AMD CEO Lisa Su said on the company’s quarterly earnings call Tuesday that the third quarter of 2026 was “the largest and most profitable in our history.” AMD reported a record $13.4 billion in quarterly revenue and predicts it will hit another record next quarter of $17 billion. The company’s data center business is driving that growth, with $8.5 billion in quarterly data center revenue for the third quarter of 2026. Su said AMD expects its revenue to “grow more than 80 percent in 2027,” adding that “data center will be the largest contributor.”
Over time, most of AMD’s revenue could come from its data center business. In response to a question during Tuesday’s earnings call, Chief Financial Officer Jean Hu said, “Looking forward to 2027, we believe our data center business will account for more than 80 percent of the company’s total revenue.”
In the third quarter of 2026, approximately 63 percent of AMD’s net quarterly revenue came from its data center business. Over the past two years, the company’s revenue increases have closely mirrored its data center business: in the third quarter of 2026, its total revenue increased by $1.9 billion, while its data center revenue increased by $1.8 billion.
As AMD continues to break data center revenue records, its gaming business fell 40 percent compared to last year, falling to $773 million. PCs, gaming consoles and other technology have been hit by price increases in recent months due to shortages of RAM and other components, driven by demand from AI data centers. The shortage may not end soon: Intel said it doesn’t expect the shortage to improve next year and SK Hynix predicted it will last until 2030.
Su acknowledged the price increases, saying, “Our view is that this is one of those times: When, you know, component prices go up, that affects the overall price of the system. You would expect the consumer markets to be more sensitive to that, so we’ve seen a bit of a slowdown in direct sales.” Su added: “We are planning, with the current environment, for a bad year in 2027.”
