AMD reported its highest quarterly revenue ever in Q3, reaching $13.377 billion, driven primarily by surging demand for its Epyc data center processors and Instinct AI accelerators. The company’s data center business generated $8.55 billion in revenue, up 97% year-over-year, now accounting for 64% of total company sales.
Most significantly, AMD projects Q4 revenue of approximately $17 billion (plus or minus 3%), which would exceed Intel’s guidance of $15 billion to $16 billion for the same period. According to the source, if AMD meets its guidance, this would represent the first time in history that AMD’s quarterly sales surpass Intel’s.
The data center surge reflects strong adoption by major cloud providers. AMD noted that Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are already running workloads on its Helios rack-scale systems powered by Instinct MI455X accelerators. Looking ahead, AMD expects data center revenue to reach approximately $12.8 billion in Q4 2026, with projections showing server CPU revenue will double in 2027 and data center AI accelerator revenue will more than double.
However, AMD’s Client and Gaming business faced challenges, generating $3.722 billion in Q3 revenue, down 8% year-over-year. Gaming products sales dropped to $773 million from $1.298 billion a year earlier, as Microsoft and Sony purchased fewer console chips and discrete GPU sales remained weak. AMD projects its Client and Gaming business will contract more than 20% sequentially in Q4 2026 due to higher memory prices weakening PC demand. The company expects double-digit PC market declines in 2027, though it plans to outperform the market by focusing on enterprise and premium segments.
AMD’s Embedded business showed stronger momentum, with revenue up 29% year-over-year to $1.11 billion, driven by demand from aerospace, defense, automotive, and industrial customers. The company expects double-digit sequential growth in this segment for Q4 2026.
Key facts
- AMD expects Q4 2026 revenue of approximately $17 billion, exceeding Intel’s projected $15-16 billion guidance
- Data center business revenue reached $8.55 billion in Q3 2026, up 97% year-over-year and now 64% of total sales
- AMD projects data center will represent over 80% of total revenue in 2027
- Q3 2026 net income increased 95% to $2.43 billion with 54% gross margin
- Client and Gaming revenue declined 8% year-over-year; gaming sales dropped 40% to $773 million
- AMD expects PC market to decline double-digits in 2027 while planning to outperform the overall market