AMD’s data-center revenue nearly doubles as it forecasts faster fourth-quarter growth

AMD reported third-quarter 2026 results after the U.S. market closed on November 3. Revenue rose 45% from a year earlier to $13.38 billion, beating expectations. Data-center revenue increased 97% and accounted for about 64% of total sales.^[1][2][3] AMD attributed the performance to record sales of Instinct GPUs, which accelerate tasks such as AI computing, and EPYC CPUs, which handle general-purpose server computing.^[3]

Management forecast fourth-quarter revenue of about $17 billion, up roughly 66% from a year earlier and above analysts’ expectations.^[4][5] It also said it expects revenue growth of more than 80% in 2027; both figures remain management’s projections for future sales.^[6]

Customers adding AI computing capacity need accelerators and the server processors that work alongside them. Record sales in both AMD product lines show that this spending is reaching suppliers’ revenue, while making AMD’s growth more dependent on continued data-center purchases.^[3][2] AMD is also moving toward large rack-scale systems, which combine multiple chips and supporting equipment into an integrated product. If sales expand as expected, assembly and equipment suppliers could gain business alongside AMD.^[7]

Scaling deliveries also requires cash to build inventory first. Earnings analysis reported that inventory and other working-capital needs absorbed substantial cash, leaving third-quarter free cash flow—the cash from operations remaining after capital spending—at $554 million.^[8] The next business test is whether higher sales produce stronger cash generation as that inventory is delivered to customers.^[8]

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