AMD says AI chip revenue will surpass server CPUs for the first time in Q4

On Tuesday evening, November 3, 2026, after US market close, AMD reported third-quarter results for the fiscal quarter covering June 28 to September 26, 2026. Revenue rose 45% year over year to $13.377 billion, a new quarterly record, coming in about 2.3% above analyst expectations and above the top end of the company's own guidance range of $13.3 billion. On a non-GAAP basis, EPS climbed 74% year over year to $2.09, more than 6% above analyst expectations, and the operating margin expanded 5 percentage points to 29%. The data center segment grew 97% year over year to $8.546 billion, roughly 3.3% above market expectations, with its share of total revenue rising from 47% a year earlier to 64%. AMD said the increase was driven by strong demand for EPYC server CPUs and record sales from the Instinct MI450 series GPUs.

On the earnings call, AMD CEO Lisa Su said data center demand was accelerating and that demand for both Instinct GPUs and EPYC CPUs continued to strengthen. She said AMD expects AI chip revenue to surpass server CPU revenue for the first time in the fourth quarter. She also forecast that server revenue would double in 2027, and that the data center business could account for up to 80% of total revenue. Su added that demand currently exceeds supply, and that AMD is working with wafer, substrate, advanced packaging, memory, and other key component suppliers to expand capacity. On the product side, she said the sixth-generation EPYC "Venice" server processors had already begun generating revenue shipments in the third fiscal quarter, and that the first OEM systems based on them were expected to launch in the fourth fiscal quarter. AMD said it would scale up production of the Helios rack-scale AI systems and Venice processors in the fourth quarter. Venice is AMD's sixth-generation EPYC server processor line for cloud, enterprise, and high-performance computing markets, built on TSMC's 2nm process and the Zen 6 architecture, which the company said brings significant gains in performance, energy efficiency, and compute density.

For the fourth quarter, AMD guided revenue to about $17 billion, plus or minus 3%, exceeding analyst estimates. At the midpoint, that implies roughly 66% year-over-year and about 27% quarter-over-quarter growth, which would set another quarterly record. Following the results, AMD shares rose 8% on November 4.

One note on sourcing: Bloomberg reported the fourth-quarter revenue as $17 billion, plus or minus 3%, while Wall Street CN described it as around $17 billion, plus or minus 3%; the two accounts differ slightly in wording. As of the reports published on November 4, AMD had not yet released its actual fourth-quarter results, so the guidance, product shipment plans, and capacity expansion efforts remain management statements rather than reported figures.