AMD Posts Record Quarter as Data Center Revenue Surges

AMD reported third-quarter net income of $2.43 billion, or $1.46 per share. Excluding one-time gains and costs, earnings were $2.09 per share, above the $1.94 average estimate from analysts surveyed by Zacks Investment Research. Revenue also topped expectations of $13.13 billion.

Data center revenue reached a record $8.5 billion, accounting for about 63% of quarterly revenue and rising nearly in step with the company’s overall growth. Chief Executive Lisa Su described the quarter as the largest and most profitable in AMD’s history. She said the company expects revenue to grow more than 80% in 2027, with data center sales the biggest contributor.

Chief Financial Officer Jean Hu said the data center business could make up more than 80% of AMD’s total revenue looking beyond 2027. The company forecast revenue of $17 billion for the next quarter, which would set another record.

The results came amid unsettled trading in technology shares following concerns about the scale of investment in artificial intelligence. AMD shares rose after the earnings release. The company’s gaming revenue, meanwhile, fell 40% from a year earlier to $773 million. Su said higher component costs were affecting consumer system prices and that AMD was planning for a down year in 2027 for that market.