AMD posts record quarterly revenue and guides Q4 above Intel's forecast
Data Center demand for Epyc chips and Instinct accelerators now drives most of AMD's growth, while its PC and gaming business shrinks.
AMD posted its highest quarterly revenue to date, $13.377 billion for the quarter, with net income up 95% to $2.43 billion and diluted EPS of $1.46. Growth was driven by its Data Center unit, which hit a record $8.55 billion as demand for Epyc processors and the new Instinct MI455X accelerators in Helios rack systems rose, with Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure already running workloads on early Helios systems. Client and gaming sales fell 8% year over year, weighed down by higher memory prices and reduced console chip orders, and AMD expects that segment to drop more than 20% sequentially in Q4 and PC shipments to fall by double digits in 2027. AMD guided Q4 revenue to about $17 billion, which would exceed Intel's projected $15 to $16 billion and put AMD ahead of its larger rival for the first time. Data Center is expected to reach over 80% of AMD's revenue by 2027, as server CPU revenue doubles and data center AI revenue grows faster than previously forecast.
Why it matters
The quarter shows AMD's revenue shifting toward data center hardware, where AI and server demand is strong, and away from consumer PCs and gaming, which are weakened by higher memory prices. If AMD's Q4 guidance holds, it would report more revenue than Intel for the quarter, a first. Readers following the chip market should note that the balance between data center and client products is changing, with the client segment expected to fall sharply in the fourth quarter.
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