Huo Xing Finance reports that on November 4, AMD held a conference call following the release of its third-quarter 2026 financial results. AMD expects that, in the fourth quarter of 2026, revenue from its data center AI business will surpass that of its server CPU business for the first time, with total data center revenue projected to increase by approximately 50% quarter-over-quarter. The company anticipates total fourth-quarter revenue of around $17 billion, representing a year-over-year growth of approximately 66%. AMD’s third-quarter revenue rose 45% year-over-year to $13.377 billion, setting a new quarterly record and exceeding analyst expectations by about 2.3%; non-GAAP earnings per share increased 74% year-over-year to $2.09, surpassing forecasts by more than 6%; gross margin reached 56%, up 190 basis points year-over-year. Data center revenue grew 97% year-over-year to $8.5 billion, increasing its share of total revenue from 47% in the same period last year to 64%. AMD CEO Lisa Su forecasts that total company revenue in 2027 will grow by more than 80% year-over-year, with data center business accounting for over 80% of total revenue, and server business revenue expected to double year-over-year. She noted that demand continues to outpace supply, and the company is working with wafer, substrate, advanced packaging, and memory suppliers to expand capacity. AMD CFO Devinder Kumar predicts that operating expenses in 2027 will grow at less than half the rate of revenue growth, leading to a significant improvement in operating margin. Su stated that AI agents are becoming the “next killer app” for cloud CPUs, driving demand not only for accelerators but also for server CPUs. In contrast, the PC market is facing pressure from rising costs of memory and other components. Su indicated that AMD’s 2027 planning assumes a double-digit percentage decline in global PC shipments, and the company will focus its efforts on enterprise, high-end consumer, and desktop channels.
AMD's Q4 data center AI revenue to surpass server CPUs; 2027 revenue growth expected to exceed 80%
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Summary
AMD reported during its Q3 2026 earnings call that data center AI revenue is expected to surpass server CPU revenue in Q4 2026. The segment’s revenue is projected to increase 50% quarter-over-quarter, with total revenue forecast at $17 billion, a 66% year-over-year growth. Q3 revenue reached $13.377 billion, up 45% year-over-year and exceeding estimates by 2.3%. Data center revenue rose 97% to $8.5 billion, accounting for 64% of total sales. CEO Dr. Lisa Su anticipates 2027 revenue growth exceeding 80%, with data center revenue surpassing 80% of total sales. With AI and crypto news gaining momentum, rising demand may be tied to broader inflation trends.
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