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AMD Eyes Over 80% Revenue from Data Centers

4 Nov

Summary

AMD anticipates data center revenue to exceed 80% of total company revenue post-2027.
The company reported a record $13.4 billion in quarterly revenue for Q3 2026.
AMD's gaming business experienced a 40% year-over-year revenue decline.

AMD Eyes Over 80% Revenue from Data Centers

AMD's chief executive officer, Lisa Su, announced on Tuesday that the company's third quarter of 2026 was its most profitable in history, generating a record $13.4 billion in revenue. Projections indicate an expectation of further record highs in the upcoming quarter, potentially reaching $17 billion. The company's data center division is the primary driver of this expansion, contributing $8.5 billion in quarterly revenue for Q3 2026.

Looking ahead, AMD anticipates its data center business will eventually constitute more than 80 percent of its total company revenue. This strategic focus comes as the gaming segment experienced a significant downturn, dropping 40 percent year-over-year to $773 million. This decline is partly attributed to industry-wide price hikes on components like RAM, impacting consumer markets and leading AMD to forecast a down year for 2027 in its consumer-facing businesses.

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