What happened
AMD posted record third-quarter revenue of $13.377 billion, up from $9.25 billion a year earlier, and forecast fourth-quarter sales of roughly $17 billion, plus or minus 3%, Tom's Hardware reported. Intel has guided to $15 billion to $16 billion for the same period, so AMD would generate more quarterly revenue than its larger rival for the first time if both forecasts hold.
Data center revenue climbed 97% from a year earlier to $8.55 billion. AMD credited demand for its newest Epyc server chips and the debut of the Instinct MI455X accelerator, which powers its Helios rack-scale systems. AMD noted that OpenAI, Microsoft, Meta, Oracle Cloud Infrastructure and Anthropic already run workloads on their first Helios systems. Net income rose 95% to $2.43 billion, and the company expects data center sales of about $12.8 billion in the fourth quarter.
Client and Gaming revenue fell 8% year over year to $3.722 billion, as gaming sales dropped to $773 million on lower console chip purchases by Microsoft and Sony. AMD expects the segment to shrink by more than 20% sequentially in the fourth quarter as higher memory prices weigh on PC demand. Chief executive Lisa Su said AMD is planning for a double-digit percentage decline in PC unit shipments in 2027.
Context
Data center products made up 47% of AMD's sales in the third quarter of 2025 and 64% in the latest quarter, and Su said she expects that share to exceed 80% in 2027, with server revenue projected to double that year. AMD's Embedded unit also grew, with revenue up 29% to $1.11 billion on demand from defense and aerospace, automotive, industrial and communications buyers.
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