AMD Reports 45 Percent Revenue Jump as Data Center Sales Hit Record $8.55 Billion

Advanced Micro Devices reported strong third-quarter 2026 results, with total revenue rising 45 percent year-over-year to $13.38 billion. Data center revenue surged 97 percent to a record $8.55 billion, driven by demand for AI chips.

The company provided fourth-quarter revenue guidance of approximately $17 billion, signaling continued growth in its AI-focused product lines.

AMD's results reflect the broader surge in demand for chips that power artificial intelligence workloads. Data centers are expanding rapidly to support large language models and AI inference, and AMD has positioned its Instinct GPU line as a competitor to Nvidia's dominant H100 and H200 chips.

Super Micro Computer also reported strong results, posting a 298 percent revenue increase to $19.95 billion for its fiscal first quarter. The company raised its fiscal 2027 revenue outlook to a range of $72 billion to $82 billion.

The data center boom has created new infrastructure challenges. Some U.S. data center operators, facing multi-year delays in connecting to the electrical grid, have begun repurposing jet engines for on-site power generation.

AMD's gaming revenue declined significantly in the quarter, reflecting the broader industry pivot toward AI-heavy compute. The company's client segment, which covers PC processors, also showed modest growth as the PC market stabilizes after years of post-pandemic decline.

Analysts say AMD's data center momentum is likely to continue into 2027 as hyperscalers including Microsoft, Google, and Amazon continue to expand their AI infrastructure. AMD has also been gaining ground in the enterprise server market, where customers are looking for alternatives to Nvidia amid supply constraints.