AMD Beats Q3 Estimates as Data Center Revenue Jumps 97%

Advanced Micro Devices (AMD) delivered stronger-than-expected financial results for the third quarter of 2026, with revenue climbing 45% year over year to $13.38 billion. The semiconductor company reported the results on Tuesday, November 3, as accelerating demand for artificial intelligence infrastructure drove data center sales sharply higher.

AMD recorded adjusted earnings of $2.09 per share, exceeding the $1.95 forecast compiled by LSEG, according to CNBC. Revenue also surpassed the $13.09 billion analyst estimate. Yahoo Finance separately reported a consensus revenue forecast of $13.08 billion and an earnings estimate of $1.97 per share.

The data center division generated approximately $8.5 billion in revenue, compared with $4.34 billion during the same quarter last year. Its 97% annual growth significantly strengthened the segment's contribution to AMD's overall business, increasing its revenue share to 64%, up from 47% a year earlier.

CEO Lisa Su attributed the momentum to stronger demand for AMD's server processors and Instinct accelerators. She also highlighted production expansion involving the company's Helios systems and Venice processors.

"Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and 'Venice' production," said Lisa Su, AMD's CEO.

Su also expressed confidence in the company's longer-term business prospects, citing its product portfolio and relationships with customers and suppliers.

"With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years," said Su.

During the earnings call, Su projected that server revenue could double year over year in 2027. She also indicated that demand for data center artificial intelligence products was accelerating beyond the company's expectations from 90 days earlier.

AMD has been strengthening its supply chain to accommodate higher production volumes, including securing essential manufacturing materials and components.

"We have worked across our supply chain to secure the wafers, substrates, advanced packaging, memory, and other key components needed to support much higher growth next year," said Su.

The company is also benefiting from the growing adoption of agentic AI applications, which require substantial computing resources to operate autonomous software agents. AMD's server CPUs support virtual machines and extended computing workloads associated with these applications.

"Adoption is just starting, and we expect demand to grow sharply as agents are deployed more broadly and take on more complex work," said Su during the earnings call.

AMD's broader portfolio also includes Helios rack-scale computing systems designed to compete with Nvidia's AI infrastructure offerings. Meta, Microsoft, Anthropic, OpenAI, and Oracle are among the companies beginning to deploy AMD's systems.

Outside its data center operations, AMD experienced weaker performance in consumer-oriented markets. Its client business, which includes PC processors, generated approximately $2.9 billion, below the $3.06 billion analyst estimate reported by Yahoo Finance.

Gaming revenue reached $773 million, declining 40% year over year. Although the figure exceeded the $655 million analyst forecast, higher memory and storage costs have contributed to more expensive gaming hardware and weaker consumer demand.

CNBC reported that AMD's combined client and gaming segment generated approximately $3.7 billion, representing an 8% annual decline. The figures reflect continued pressure across the personal computer industry.

AMD expects fourth-quarter revenue of approximately $17 billion, above the $16.2 billion average analyst forecast reported by LSEG. The company projects a gross margin of 55%, slightly below the 55.3% estimate cited by StreetAccount.

Intel's recent financial performance highlights similar differences across the semiconductor market. Although Intel reported 78% growth in data center revenue during its third quarter, its shares dropped nearly 29% after the company issued a weaker-than-expected business outlook.

Both companies face challenges in the PC market, where higher component costs and difficult year-over-year comparisons have weighed on demand. Counterpoint Research reported that global PC shipments declined 4% in the second quarter compared with the previous year.

Meanwhile, AMD's shares had gained approximately 125% to 129% during 2026, according to CNBC, although recent concerns about excessive spending on AI infrastructure triggered several consecutive sessions of losses. The stock initially rose in extended trading following the earnings announcement before surrendering part of its gains.