AMD's total revenue reached a record $13.4 billion in the third quarter, marking its largest and most profitable quarter to date. The Data Center segment was the main growth driver, but Gaming revenue fell 40% year-over-year to $773 million.
AMD's Data Center segment generated $8.5 billion in revenue in the third quarter, accounting for approximately 63% of the company's quarterly net revenue. The company's total revenue increased by $1.9 billion during the quarter, with the Data Center segment contributing $1.8 billion, indicating that the overall revenue growth was highly aligned with this segment's performance.
AMD CEO Lisa Su expects the company's revenue to potentially rise further to $17 billion in the next quarter, with revenue growth exceeding 80% by 2027, driven primarily by the Data Center segment. CFO Jean Hu stated that beyond 2027, the Data Center business could account for more than 80% of AMD's total revenue.
Meanwhile, demand for AI data centers is driving shortages in memory and other components, putting upward pressure on prices for PCs and gaming consoles. Lisa Su acknowledged that rising component costs will push up overall system prices, and the consumer market is more sensitive to price changes. AMD has already observed a slowdown in end-user sales and is preparing for a year-over-year decline in the consumer market in 2027 based on the current environment.