AMD rides data center riches to ‘largest and most profitable’ quarter in history
AMD reported record-breaking quarterly revenue of $13.4 billion, driven primarily by massive growth in its data center business. While the company expects continued expansion in AI-related infrastructure, it anticipates a slowdown in consumer markets due to component shortages and price hikes.
Why it matters
AMD's pivot toward data center dominance reflects the broader industry trend of prioritizing AI infrastructure over consumer electronics, which may impact future hardware availability.
AMD CEO Lisa Su said in the company’s quarterly earnings call on Tuesday that Q3 2026 was “was the largest and most profitable in our history.” AMD reported a record $13.4 billion in quarterly revenue, and it’s predicting it will hit another record high next quarter of $17 billion. The company’s data center business is driving that growth, with $8.5 billion in data center quarterly revenue for Q3 2026. Su said AMD’s expecting its revenue to “grow more than 80 percent in 2027,” adding that “data center will be the largest contributor.”
Eventually, most of AMD’s revenue might come from its data center business. In response to a question during Tuesday’s earnings call, CFO Jean Hu said, “Looking ahead of 2027, we actually think our data center business will be more than 80 percent of total company revenue.”
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