Key facts
- AMD CEO Lisa Su said 80% of 2027 sales will come from data-center chips, per Reuters.
- Third-quarter data-center revenue jumped 97% to a record $8.55 billion, above estimates of $8.20 billion, per Reuters.
- AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, above the $16.23 billion LSEG estimate.
- Client and gaming segment sales fell 8% to $3.72 billion, missing estimates of $3.79 billion, Reuters reported.
- AMD's Helios rack is in production and set for a larger fourth-quarter ramp-up, with initial systems tested at Meta, per Reuters.
- Rival Intel forecast its chip revenue to decline in the mid-20% range for the fourth quarter, Reuters reported.
AMD forecast on November 3, 2026 that its revenue would rise more than 80% in 2027, above the 77% growth analysts estimate according to LSEG data cited by Reuters, as the chipmaker's data-center business expands. CEO Lisa Su told analysts on a conference call that 80% of sales in 2027 would come from data-center chips, which she said would "drive the majority of our revenue and earnings growth."
Data-center revenue jumped 97% to a record $8.55 billion in the third quarter, above estimates of $8.20 billion, per Reuters. Group revenue rose 45% to $13.38 billion, beating estimates of $13.09 billion, and adjusted profit came in at $2.09 per share against estimates of $1.95.
AMD forecast fourth-quarter revenue of about $17 billion, plus or minus 3%, above the $16.23 billion average estimate compiled by LSEG. The company said its adjusted gross margin is expected to be about 55%, in line with estimates of 55.27% and down from 56% in the third quarter.
Su said AMD sees demand across its data-center CPU and data-center AI businesses, and that the company has been planning for that growth for several years. AMD has moved beyond standalone chips to compete with Nvidia's rack-scale systems; its flagship Helios rack, combining the MI455X accelerator and "Venice" server chips, is in production and set for a larger ramp-up in the fourth quarter, with initial systems being tested at Meta, Reuters reported.
Third-quarter sales in AMD's client and gaming segment, which houses its PC chips and console processors, fell 8% to $3.72 billion, missing estimates of $3.79 billion. AMD said it expects PC unit shipments to decline by a double-digit percentage in 2027, though Su said the company would outperform the market.
Reuters reported that the results and forecast contrasted with a weak outlook from rival Intel, which forecast its chip revenue to decline in the mid-20% range for its fourth quarter and said the slowdown would last into 2027. Intel shares rose 2%, Nvidia stock climbed over 1% and Broadcom advanced 1.2%, per Reuters.