AMD's revenue rises 45% to $13.38 billion as data center

Why it matters: AMD's Data Center segment now brings in close to two-thirds of the company's revenue, a measure of how fast spending on AI chips and servers is reshaping one of the biggest chipmakers.

Advanced Micro Devices reported revenue of $13.38 billion for its third quarter, ended Sept 26, on Tuesday after the market closed. That is up 45% from $9.25 billion a year earlier and up 16% from the second quarter. The company calls it a record quarter.

Data center: Sales in AMD's Data Center segment, which includes its Instinct AI accelerators and EPYC server processors, nearly doubled to $8.55 billion from $4.34 billion, a gain of 97%. AMD credits demand for its server processors and the launch of its Instinct MI450 Series graphics processors. The segment made up close to two-thirds of total revenue in the quarter.

PCs, gaming and embedded: Client and Gaming segment revenue fell 8% to $3.72 billion. Within it, sales of PC processors rose 7% to $2.95 billion, while gaming revenue dropped 40% to $773 million, which AMD attributes to lower sales of semi-custom chips and graphics products. Embedded segment revenue rose 29% to $1.11 billion.

Profit: Gross margin was 54%, up from 52%. Net income rose to $2.43 billion, or $1.46 per diluted share, from $1.24 billion, or 75 cents, a year earlier. GAAP results include a $1.10 billion charge for the change in value of warrants AMD issued to certain customers, which the company says moves with its stock price. On a non-GAAP basis, which excludes that charge and other items, earnings were $2.09 per share, compared with $1.20, and gross margin was 56%.

Cash: Free cash flow, a non-GAAP measure, fell to $554 million from $1.53 billion a year earlier. Capital spending in the quarter was $648 million.

Deals and customers: AMD says it has announced agreements to acquire World Labs and Taalas. It also says Anthropic, Meta, Microsoft, OpenAI and Oracle's cloud unit are running workloads on its first Helios rack-scale systems. These are the company's own statements.

The company's outlook: AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, which it says would be growth of about 66% from a year earlier and about 27% from the third quarter. It expects a non-GAAP gross margin of about 55%. These are the company's own projections.

This story is for information only and is not investment advice.

Sources

How we checked this: We read AMD's third-quarter release as filed with the SEC (Form 8-K, Exhibit 99.1, accepted Nov 3, 2026 at 4:16 PM ET) in copies saved on Nov 3, 2026 at about 5:03 PM ET, and checked every figure and company statement against it, including its financial tables.

See something wrong? Tell us and we'll fix it. Every fix is dated and listed on our Corrections page.

This article is for information only and is not investment advice. Funded Weekly does not recommend buying or selling any security. Do your own research or consult a licensed adviser.

AMD's revenue rises 45% to $13.38 billion as data center sales nearly double

Sources