AMD CEO Lisa Su said on the company's quarterly earnings call on Tuesday that the third quarter of 2026 "was the largest and most profitable in our history." AMD reported record quarterly revenue of $13.4 billion, according to the source.
The company's data center business drove that growth, with $8.5 billion in data center revenue for the quarter. AMD predicts revenue of $17 billion next quarter. Su said the company expects revenue to "grow more than 80 percent in 2027," adding that "data center will be the largest contributor."
CFO Jean Hu said, in response to a question on the call, "Looking ahead of 2027, we actually think our data center business will be more than 80 percent of total company revenue." The source reports that data center accounted for roughly 63 percent of net quarterly revenue in the third quarter of 2026.
The gaming business fell 40 percent from a year earlier to $773 million, according to the report. The source attributes the decline in part to price increases for PCs, game consoles and other devices, which it links to shortages of RAM and other components. The report says those shortages are driven by demand from AI data centers. It cites Intel as saying it does not expect the shortage to improve next year, and SK Hynix as predicting it will last until 2030.
Su acknowledged the price increases, saying, "when, you know, component prices go up, it affects overall system pricing." She added, "We have seen a bit of a slowdown in the sell-through." She also said, "We are planning with the current environment for a down year for 2027."