Lisa Su, president and CEO of Advanced Micro Devices Inc. (AMD), speaks at the company’s Gamers Day event in Seoul, South Korea, Wednesday, October 7, 2026.
SeongJoon Cho | Bloomberg | Getty Images
Advanced microdevices reported third-quarter results Tuesday that beat Wall Street expectations, with revenue up 45% and data center sales nearly doubling from a year earlier. The stock jumped 7% in extended trading.
Here are the chipmaker’s results compared to LSEG consensus estimates for the quarter:
- Earnings per share: $2.09 adjusted versus $1.95 expected
- Income: $13.38 billion versus $13.09 billion expected
Revenue increased from $9.25 billion a year earlier, AMD said in a statement.
CEO Lisa Su said in a press release that she expects the growth of data center processors to “accelerate further” and that meeting demand won’t be a problem.
“With our industry-leading product portfolio and strong relationships with our customers and supply chain, we are confident in our ability to maintain very strong revenue growth and increase profitability in the years to come,” Su said in a statement.
AMD’s report arrives a few days later Intel revealed similar growth in data centers, with revenue in this segment up 78% in the third quarter. But the stock fell 29% Friday on concerns about weak forecasts and Intel’s ability to meet demand.
The data center unit accounts for the majority of AMD’s business, accounting for 64% of overall revenue, up from 47% a year ago.
After years of chasing Nvidia in the market for artificial intelligence graphics processing units, or GPUs, AMD’s central processing units, or CPUs, are seeing a major resurgence with the rise of agentic AI applications like MetaThe muse. AMD’s server processors are essential for agent applications because they power virtual machines and can run on their own for hours. Demand for agentic AI drove AMD shares to a record high in October.
The PC market in difficulty
AMD’s stock is up about 125% this year, but it suffered three straight days of losses before recovering Tuesday amid an industry-wide selloff tied to fears of AI overspending.
AMD is also a major player in the weakening PC market, which Intel blamed for its poor outlook last week. AMD and Intel are the largest manufacturers of traditional x86 processors that power many laptops and desktops, while other laptops rely on Armprocessors based on processors such as Qualcomm and Apple.
Worldwide PC shipments fell 4% in the second quarter from a year earlier due to soaring costs of memory and other components, according to Counterpoint Research.
AMD reports PC chip sales in a combined segment with gaming chips. Revenue from that business fell 8% from a year earlier, to $3.7 billion. Gaming revenue is down 40% from a year ago.
For the fourth quarter, AMD said it expects revenue of about $17 billion, beating analysts’ average estimate of $16.2 billion, according to LSEG. AMD sees its gross margin for the quarter coming in at 55%, slightly below the average estimate of 55.3%, according to StreetAccount.
AMD also sells data center GPUs and large-scale systems called Helios, which directly compete with Nvidia’s Grace Blackwell and Vera Rubin. Meta, MicrosoftAnthropic, OpenAI and Oracle are all starting to use AMD Helios in their data centers. Meta said last week that its Helios racks were operational and AMD agreed to invest $1 billion in Meta’s stock offering.
AMD has also committed to investing up to $5 billion in Anthropic, which last week unveiled its highly anticipated prospectus as it inches closer to a potentially historic IPO.
During a visit to Taiwan in October, Su said she planned to “significantly increase our supply in 2027.” Su and Nvidia CEO Jensen Huang have both made several trips to Taiwan and South Korea this year, holding meetings with key suppliers such as Taiwan semiconductor manufacturing company and the leaders of memory SK Hynix and Samsung.
In September, AMD announced plans to acquire World Labs for $8.2 billion in an all-stock deal. The San Francisco-based AI Lab, founded by industry pioneer Fei-Fei Li, is developing a so-called global model that simulates 3D environments to facilitate the development of robots and other physically anchored AI applications.
WATCH: Helios is AMD’s first AI system to rival Nvidia Vera Rubin – we got an exclusive first look
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