Advanced Micro Devices reported record third-quarter revenue of $13.38 billion, a 45% increase from a year earlier, as sales of data-center processors and artificial intelligence chips nearly doubled. The results highlight accelerating demand for computing infrastructure as major technology companies continue investing in AI systems.
The U.S. semiconductor company said Tuesday, November 3, 2026, that its Data Center segment generated $8.55 billion in quarterly revenue, up 97% from $4.34 billion a year earlier. AMD also projected approximately $17 billion in fourth-quarter sales, signaling expectations for further growth.
According to AMD’s quarterly earnings release, total revenue increased from $9.25 billion in the comparable 2025 quarter and rose 16% from $11.54 billion in the preceding quarter. The results cover the three months ended September 26, 2026.
The data-center business accounted for approximately 64% of AMD’s total quarterly revenue, compared with about 47% a year earlier. That shift shows how rapidly server processors and AI computing equipment have become central to the company’s financial performance.
An Investozora calculation using AMD’s SEC-filed financial tables reveals that Data Center revenue increased by $4.205 billion year over year, exceeding the company’s total revenue increase of $4.131 billion. Combined revenue from AMD’s other businesses declined by approximately $74 million.
The comparison means the Data Center segment contributed more than the entire net increase in AMD’s quarterly revenue. It also illustrates the growing concentration of the company’s expansion in one business, even as its other product divisions produced mixed results.
AMD attributed the data-center growth to strong demand for its EPYC server processors and the launch of Instinct MI450 Series graphics processing units. These products support large-scale computing operations, including artificial intelligence workloads, although AMD does not separately disclose AI-only revenue within the segment.
The company’s results arrived as major cloud providers expanded their infrastructure investments. Investozora previously examined how cloud earnings were putting the financial returns from AI investment under greater scrutiny.
AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure were running workloads on its Helios rack-scale systems. Those deployments indicate a widening commercial role for its computing products, although the company did not disclose individual customer revenue contributions in its quarterly results.
The wider technology industry has also reported strong demand for computing capacity. Microsoft’s recent Azure results and Alphabet’s cloud expansion provide additional evidence of growth among major cloud-service operators. These companies’ reported sales do not, however, establish how much revenue AMD earns from any particular customer.
AMD’s profitability improved alongside revenue. Net income under generally accepted accounting principles rose 95% to $2.43 billion from $1.24 billion a year earlier, while diluted earnings per share increased to $1.46 from 75 cents.
On an adjusted, non-GAAP basis, earnings reached $2.09 per share, compared with $1.20 a year earlier, a 74% increase. The adjusted figures exclude specified accounting items and should not be confused with AMD’s GAAP earnings.
However, the company’s reported free cash flow, a non-GAAP financial measure, declined to $554 million from $1.53 billion in the comparable quarter. The contrast highlights why higher accounting profit does not necessarily translate into stronger cash generation during the same reporting period.
Performance outside the data-center division was uneven. Client revenue increased 7% to $2.95 billion, supported by Ryzen mobile processors, while gaming revenue fell 40% to $773 million. Embedded revenue climbed 29% to $1.11 billion.
The divergence adds another dimension to the broader debate over Big Tech spending. Technology companies are investing heavily in AI equipment, but the financial effects differ between the businesses purchasing that infrastructure and the semiconductor suppliers providing it. Recent Meta results also illustrated how revenue growth and profitability can move in different directions.
AMD’s third-quarter performance exceeded its own earlier forecast. In its August earnings release, the company projected third-quarter revenue of approximately $13 billion, plus or minus $300 million. Actual revenue exceeded the upper end of that range by $77 million.
For the fourth quarter, AMD expects revenue of approximately $17 billion, with a possible variation of 3%. The midpoint implies roughly 27% sequential growth and 66% growth from a year earlier. Management also forecasts an adjusted gross margin of approximately 55%.
These projections remain forward-looking estimates rather than confirmed sales. AMD must continue meeting demand, expanding production and delivering its products successfully for the expected growth to materialize.
The earnings report arrives amid considerable attention to semiconductor valuations. Investozora previously covered AMD’s market rally and the broader AI-stock selloff, illustrating how investors have responded to changing expectations surrounding artificial intelligence.
AMD’s latest financial disclosures establish substantial growth in its data-center business, but they do not determine the company’s future stock performance or the eventual returns from customers’ AI investments.
The central question now is whether AMD can sustain its rapid expansion while converting higher sales into durable profitability and cash generation. Its fourth-quarter results will provide the next direct financial test of the company’s $17 billion revenue forecast.
