AMD reports record earnings, fueled by data center demand

The surge in revenue is largely attributed to AMD’s data center business, which generated $8.5 billion in revenue during Q3 2026. The company projects revenue growth exceeding 80 percent in 2027, with the data center segment expected to be the primary driver.

Looking ahead, AMD’s Chief Financial Officer, Jean Hu, stated that the data center business could represent over 80 percent of the company’s total revenue beyond 2027. Currently, data center revenue accounts for approximately 63 percent of AMD’s net quarterly revenue.

The growth in AMD’s overall revenue has closely tracked the performance of its data center business; Q3 2026 saw a $1.9 billion increase in overall revenue alongside a $1.8 billion rise in data center revenue.

While the data center business thrives, AMD’s gaming business experienced a decline of 40 percent compared to the previous year, reaching $773 million. This downturn is linked to price increases across PCs, game consoles, and other technologies, stemming from shortages of RAM and other components spurred by demand from AI data centers.

Intel and SK Hynix have cautioned that these shortages are not expected to ease soon, with SK Hynix predicting they will persist until 2030.

“Component prices going up affect overall system pricing,” CEO Su explained. “We are planning with the current environment for a down year for 2027.”