AMD posts record $13.4 billion quarter as data centers drive growth

US chipmaker AMD reported record revenue of $13.4 billion for the third quarter of 2026 in its earnings call on Tuesday. CEO Lisa Su called it the largest and most profitable quarter in the company's history. Growth is driven mainly by the data center division, while the gaming segment has weakened as shortages of components push up prices of PCs and game consoles.

Data centers drive growth

Data center revenue for the quarter was $8.5 billion, roughly 63 percent of AMD's net quarterly revenue. Total revenue rose by $1.9 billion in the quarter, and data center revenue rose by $1.8 billion, showing that over the past couple of years the company's revenue jumps have closely followed this division.

For the next quarter, AMD forecasts another record of $17 billion. Su said she expects revenue to grow by more than 80 percent in 2027, with data centers as the largest contributor. Responding to a question, CFO Jean Hu said the company expects data centers to make up more than 80 percent of total revenue in 2027.

Gaming division shrinks

Gaming revenue fell 40 percent from a year earlier to $773 million. PCs, game consoles and other devices have become more expensive in recent months because of shortages of RAM and other components, driven by demand from AI data centers.

Intel has said it does not expect the shortage to ease next year, while South Korean memory chipmaker SK Hynix predicts it will last until 2030. Su acknowledged that rising component prices affect overall system pricing and that consumer markets are likely to be more sensitive, so the company has seen a slowdown in sell-through. She added that AMD is planning for a down year in 2027 in this part of the market.