AMD Posts Record Q3 Revenue With 45% Year-on-Year Growth as Data Centre Revenue Nearly Doubles!

Demand for AI infrastructure underpinned AMD’s growth in the third quarter of 2026, with data centre revenue setting a record of $8.546 billion. The US chipmaker reported its results on Tuesday, posting year-on-year growth of 97% and quarter-on-quarter growth of 27% in the business, which became the largest contributor to overall growth. According to AMD, rising demand for EPYC server processors and the introduction of its Instinct MI450 Series AI accelerators were the primary factors behind the strong performance. With major technology companies continuing to increase investment in AI infrastructure, AMD is stepping up the deployment of its next-generation AI computing products.

The first AMD Helios rack-scale solutions are being used to run AI models and workloads by customers including Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure. Instinct MI450 Series GPUs and sixth-generation EPYC processors power these systems. Oracle Cloud Infrastructure has also announced plans to use AMD’s sixth-generation EPYC processors in its OCI Compute E7 cloud instances. Separately, storage-optimised cloud instances powered by fifth-generation EPYC processors have become generally available, according to announcements from Google Cloud and Microsoft.

A 40% year-on-year decline in Gaming revenue to just $773 million weighed on AMD’s combined Client and Gaming business, where third-quarter revenue fell 8% to $3.722 billion. The Gaming decline mainly reflected lower revenue from semi-custom chips and graphics products. By contrast, higher sales of Ryzen mobile processors were the principal contributor to a 7% year-on-year increase in Client revenue to $2.949 billion. In the Embedded business, third-quarter revenue rose 29% year on year to $1.109 billion, supported primarily by stronger demand across end markets including aerospace and defence, automotive, communications and industrial.

For the fourth quarter, AMD has guided for revenue of approximately $17 billion, plus or minus 3%, putting the expected range at approximately $16.49 billion to $17.51 billion. The midpoint implies growth of approximately 66% year on year and 27% quarter on quarter, signalling the company’s expectation of a further acceleration in revenue growth towards year-end. Its fourth-quarter non-GAAP gross margin is forecast at approximately 55%.

Revenue surpassed the top end of AMD’s earlier guidance range as the company posted record third-quarter results, Chair and CEO Lisa Su said. She noted that data centre revenue nearly doubled year on year, while demand for Instinct and EPYC products continues to build. With production of Helios systems and next-generation processors codenamed “Venice” ramping up, the company anticipates a further acceleration in growth in the fourth quarter.

Market Insight: What Do AMD’s Earnings and Cash Flow Show?

Expansion in AMD’s data centre business generated operating leverage, reflected in a 74% year-on-year rise in third-quarter adjusted earnings per share, the company said. Strong demand throughout its data centre product portfolio is also reflected in the fourth-quarter outlook. Free cash flow, however, declined to $554 million in the third quarter from $1.530 billion in the corresponding period last year. AMD ended the third quarter with a combined $15.776 billion in cash, cash equivalents and short-term investments.