Advanced Micro Devices says a record quarter for its Data Center business will support a sharp step-up in sales, with its fourth-quarter forecast pointing to 66% year-over-year revenue growth.
For the fourth quarter, AMD expects revenue of about $17 billion, with a range of plus or minus 3%. The forecast midpoint would be 66% above the year-earlier quarter and 27% higher than the third quarter. AMD also projected non-GAAP gross margin of about 55%. Reuters reported a $16.23 billion average analyst estimate for fourth-quarter revenue, citing LSEG data, putting AMD’s midpoint above that benchmark.
After forecasting 41% revenue growth for the fiscal third quarter, AMD reported revenue of $13.377 billion for the three months ended Sept. 26, 2026, up 45% year over year and 16% sequentially. Data Center sales set a record at $8.546 billion, rising 97% year over year and 27% from the previous quarter. AMD connected the segment’s growth to demand for EPYC processors and the launch of its Instinct MI450 Series GPUs.
The other business lines had mixed results. Client and Gaming revenue fell 8% year over year to $3.722 billion. Within that segment, Client revenue rose 7% year over year to $2.949 billion, while Gaming revenue declined 40% year over year to $773 million. Embedded revenue increased 29% year over year to $1.109 billion.
Chair and CEO Lisa Su said AMD expects growth to accelerate in the fourth quarter as it expands production of Helios systems and “Venice” processors. AMD identified Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure as organizations using its first Helios rack-scale systems to run models and other workloads.
Reuters separately reported that Su told analysts AMD expects total revenue growth of more than 80% in 2027, compared with a 77% analyst estimate. AMD’s earnings release set out its fourth-quarter outlook; Reuters attributed the 2027 figure to Su’s comments on the analyst call.
