AMD posts record profit on data center sales
Data center revenue reached $8.5 billion in the third quarter, while the gaming division saw a 40 percent drop.
By Matthew Qureshi ·
AMD reported its best financial quarter to date, driven by strong performance in the data center sector.
The company generated $13.4 billion in revenue for the third quarter of 2026. CEO Lisa Su described the period as the largest and most profitable in the firm's history. The data center division was the primary engine of this growth, contributing $8.5 billion to the total. This segment represented roughly 63 percent of AMD's net quarterly revenue during that time.
The shift toward data center dominance is accelerating. CFO Jean Hu stated that the business is expected to account for more than 80 percent of total company revenue by 2027. Su projected that overall revenue would grow by more than 80 percent in that same year. The company anticipates another record high in the fourth quarter, with expected revenue of $17 billion. Recent revenue jumps have closely tracked the expansion of the data center segment. In the third quarter of 2026, total revenue increased by $1.9 billion, while data center revenue rose by $1.8 billion.
The gaming business faced a different reality. Revenue in that sector dropped 40 percent year over year, falling to $773 million. This decline coincides with rising component costs. Shortages of RAM and other parts, driven by high demand from AI data centers, have forced price hikes on PCs and game consoles over recent months. Industry leaders expect these shortages to persist. Intel said it does not anticipate improvement next year. SK Hynix predicted the conditions will last until 2030.
Su acknowledged the impact of higher component prices on the consumer market. She noted that consumers are more sensitive to price increases, leading to a slowdown in sell-through rates. The company is currently planning for a down year in 2027 within the consumer segment.
AMD will report its fourth quarter results in the coming months. The company expects to reach $17 billion in revenue during that period, continuing the trend of record-breaking figures fueled by data center demand.
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