AMD’s third-quarter results laid out the new hierarchy inside the chipmaker. Revenue climbed 45% year over year to $13.38 billion, ahead of Wall Street expectations, while data-center sales nearly doubled. The division accounted for 64% of company revenue, helping send shares up 8% in extended trading.¹

On the earnings call, chief executive Lisa Su called the period AMD’s “largest and most profitable” quarter in history. Data-center revenue reached $8.5 billion, and the company forecast roughly $17 billion in total fourth-quarter revenue. CFO Jean Hu said the data-center business could exceed 80% of AMD’s total revenue in 2027—a striking shift for a company long identified with PC processors and gaming hardware.²

Su has embraced that pivot without hesitation. “We are a data center first company,” she said after the results, projecting 50% data-center growth from the third quarter to the fourth.³ AMD says it has secured wafers, memory, advanced packaging and other supplies needed to support the expansion, betting that demand for AI systems and agentic applications will keep accelerating.¹

But the supply-chain scramble has a reverse side. AI data centers are helping drive up memory and other component costs, raising system prices and weakening demand in the consumer market. AMD’s combined client and gaming segment fell 8% year over year to $3.7 billion; gaming revenue dropped 40%.¹

Su acknowledged the pressure directly: higher component prices affect system pricing, and “one would expect the consumer markets to be more sensitive to that.” AMD has seen “a bit of a slowdown in the sell-through,” she said, and is planning for “a down year for 2027.”²

The contrast is becoming AMD’s central challenge. AI has delivered the company’s fastest growth and its clearest strategic identity. Yet the same investment frenzy powering its servers is making laptops, PCs and gaming hardware harder to sell.