AMD projects that over 80 percent of its future revenue will originate from its data center operations.
During the company’s quarterly earnings call on Tuesday, CEO Lisa Su announced that the third quarter of 2026 was the largest and most profitable period in AMD's history. The company reported a record quarterly revenue of $13.4 billion and anticipates reaching another record of $17 billion in the following quarter.
This growth is primarily fueled by the data center division, which generated $8.5 billion in revenue during Q3 2026. Su stated that AMD expects revenue to grow by more than 80 percent in 2027, with the data center segment serving as the largest contributor.
Ultimately, the majority of AMD's revenue could stem from its data center business. During the call, CFO Jean Hu addressed this by stating, "Looking ahead of 2027, we actually think our data center business will be more than 80 percent of total company revenue."
As of Q3 2026, data center revenue accounted for approximately 63 percent of AMD's total net quarterly revenue. Over the past two years, the company's revenue fluctuations have closely mirrored the performance of its data center business, with a $1.9 billion increase in overall revenue and an $1.8 billion increase in data center revenue during Q3 2026.
While AMD continues to shatter records in the data center sector, its gaming revenue declined by 40 percent year-over-year, falling to $773 million. Price increases for PCs, game consoles, and other technology in recent months have resulted from RAM and other component shortages driven by demand from AI data centers. These shortages may persist, as Intel predicts they will not improve next year and SK Hynix forecasts they will last until 2030.
Su acknowledged the price increases, noting, "Our view is, this is one of those times — when, you know, component prices go up, it affects overall system pricing. One would expect the consumer markets to be more sensitive to that, and so we have seen a bit of a slowdown in the sell-through." She concluded, "We are planning with the current environment for a down year for 2027."
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