AMD Data Center Revenue Soars to $8.5 Billion as Gaming Segment Slumps

Advanced Micro Devices reported record quarterly revenue of $13.4 billion on Tuesday, driven entirely by its data center division. The company’s data center business generated $8.5 billion in sales for the third quarter of 2026, accounting for roughly 63 percent of total net revenue. This surge came as the gaming segment contracted sharply, marking a stark divergence in the company's performance.

CEO Lisa Su described the quarter as the largest and most profitable in the company's history. She stated that AMD expects revenue to grow more than 80 percent in 2027, with data center operations serving as the primary engine for that expansion. The company projects it will reach another record high of $17 billion in revenue next quarter.

CFO Jean Hu indicated that the shift toward data center dependency is accelerating. She noted that looking ahead to 2027, the data center business is expected to comprise more than 80 percent of total company revenue. Over the past two years, overall company revenue increases have closely mirrored growth in this specific sector. In the most recent quarter, total revenue rose by $1.9 billion, while data center revenue increased by $1.8 billion.

The data center boom is straining the company's other divisions. AMD's gaming business fell 40 percent compared to the same period last year, dropping to $773 million. This decline coincides with widespread price hikes in PCs and game consoles caused by shortages in RAM and other components. Industry leaders, including Intel and SK Hynix, have warned that these supply constraints will persist through at least 2030.

Su acknowledged that rising component costs are affecting system pricing and consumer sensitivity. She observed a slowdown in sell-through rates in consumer markets. Consequently, the company is planning for a down year in 2027, a forecast that reflects the ongoing pressure on margins and demand outside of the enterprise sector.