AMD Q3 Revenue Rises 45% Year on Year to a Record High as Data Center Revenue Nearly Doubles!

US chipmaker AMD released its third-quarter 2026 financial results on Tuesday. AMD’s data center revenue reached a record $8.546 billion, up 97% year on year and 27% quarter on quarter, becoming the main driver of the company’s overall growth. AMD said the strong performance was primarily driven by growing demand for EPYC server processors and the launch of its Instinct MI450 Series AI accelerators. As major technology companies continue to expand their investments in AI infrastructure, AMD is accelerating the deployment of its next-generation AI computing products.

Customers including Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running AI models and workloads on the first AMD Helios rack-scale solutions. These systems feature Instinct MI450 Series GPUs and sixth-generation EPYC processors. Meanwhile, Oracle Cloud Infrastructure announced that its OCI Compute E7 cloud instances will use AMD’s sixth-generation EPYC processors. Google Cloud and Microsoft also announced the general availability of storage-optimized cloud instances powered by fifth-generation EPYC processors.

AMD’s combined Client and Gaming revenue totaled $3.722 billion in the third quarter, down 8% year on year. Client revenue reached $2.949 billion, up 7% year on year, primarily driven by increased sales of Ryzen mobile processors. However, Gaming revenue was just $773 million, down 40% year on year, mainly due to lower revenue from semi-custom chips and graphics products. Embedded revenue reached $1.109 billion in the third quarter, up 29% year on year, primarily supported by growing demand across end markets including aerospace and defense, automotive, communications and industrial.

Looking ahead to the fourth quarter, AMD expects revenue of approximately $17 billion, plus or minus 3%, representing a range of approximately $16.49 billion to $17.51 billion. At the midpoint of its guidance, fourth-quarter revenue is expected to grow approximately 66% year on year and 27% quarter on quarter, indicating that the company expects revenue growth to accelerate further toward year-end. AMD also expects its fourth-quarter non-GAAP gross margin to be approximately 55%.

AMD Chair and CEO Lisa Su said the company delivered record third-quarter results, with revenue exceeding the upper end of its previous guidance range and data center revenue nearly doubling year on year. Demand for Instinct and EPYC products continues to strengthen. As production of Helios systems and next-generation processors codenamed “Venice” ramps up, the company expects growth to accelerate further in the fourth quarter.

Market Insight:

AMD said its third-quarter adjusted earnings per share rose 74% year on year, reflecting the operating leverage generated by the expansion of its data center business. The company’s fourth-quarter outlook also reflects strong demand across its data center product portfolio. Meanwhile, AMD’s third-quarter free cash flow was $554 million, down from $1.530 billion in the same period last year. At the end of the third quarter, the company held a combined $15.776 billion in cash, cash equivalents and short-term investments.