AMD reports 45% revenue increase driven by data center growth

Advanced Micro Devices (AMD) reported third-quarter earnings on Tuesday that exceeded Wall Street expectations, reporting a 45% increase in revenue compared to a year earlier. The company's data center revenue nearly doubled during the period, according to a statement from AMD.

Financial Performance and Data Center Growth

AMD reported the following results for the third quarter:

• Earnings per share: $2.09 adjusted, compared to $1.95 expected.
• Revenue: $13.38 billion, compared to $13.09 billion expected.

Revenue increased from $9.25 billion a year earlier. The data center unit now accounts for 64% of AMD's overall revenue, up from 47% a year ago. CEO Lisa Su stated in a press release that she expects growth in data center processors to "accelerate further," and that meeting demand won't be a problem. "With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years," Su said.

Market Context and AI Demand

AMD's server CPUs are seeing a resurgence due to the rise of agentic AI applications, such as Meta's Muse. AMD also sells data center GPUs and full rack-scale systems called Helios, which compete with Nvidia's Grace Blackwell and Vera Rubin. Companies including Meta, Microsoft, Anthropic, OpenAI, and Oracle have begun using AMD Helios in their data centers.

AMD has made several strategic investments and acquisitions:

• AMD agreed to invest $1 billion in Meta's equity offering.
• AMD has committed to investing up to $5 billion in Anthropic.
• In September, AMD announced it would acquire World Labs for $8.2 billion in an all-stock deal.

PC Market and Future Outlook

While data center sales grew, AMD's revenue in its segment combining PC and gaming chips fell 8% from a year earlier to $3.7 billion. Within that segment, gaming revenue decreased 40% from a year ago. This occurs amid a weakening PC market; global PC shipments declined 4% in the second quarter due to rising costs for components, according to Counterpoint Research.

For the fourth quarter, AMD expects approximately $17 billion in revenue. The company anticipates its gross margin for the quarter will be 55%, according to StreetAccount.

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Sources

• cnbc.com: AMD (AMD) Q3 earnings report 2026
• tikr.com: Super Micro Rises 4%, Dell Up 4%, AMD Up 5% as AI Stocks Rebound Ahead of Earnings | TIKR.com

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.