Advanced Micro Devices reported stronger than expected results on Tuesday, 3 November 2026, and AMD earnings gave investors a fresh reason to look again at spending on artificial intelligence hardware. The company forecast fourth quarter revenue of about $17 billion, plus or minus 3 percent, above the $16.23 billion average estimate compiled by LSEG. Shares rose about 8 percent in extended trading after the announcement.
The AMD earnings report also carried a longer view. Chief executive Lisa Su told analysts on a conference call that the company expects overall revenue to rise more than 80 percent in 2027. That forecast is above the 77 percent increase analysts estimate, according to LSEG data. Su said 80 percent of sales next year will come from data center chips, and she said those chips will drive most of the revenue and earnings increase.
"We see demand across the data-center business, across our CPU business, as well as our data-center AI business," Su said. "And when you look at the rate and pace of that growth, we have been planning for it for the last several years."
AMD earnings beat estimates in third quarter
Third quarter revenue rose 45 percent to $13.38 billion, beating estimates of $13.09 billion. Adjusted profit came in at $2.09 per share, compared with estimates of $1.95. Data center revenue jumped 97 percent to a record $8.55 billion, above estimates of $8.20 billion. The AMD earnings result answered, for one evening at least, questions about whether demand for AI hardware was cooling.
The AMD earnings figures stood out because rival Intel had issued a weak outlook last week. Intel forecast chip revenue would decline in the mid-20 percent range for its fourth quarter, and it said the slowdown would last into 2027. On Tuesday, Intel shares rose 2 percent, Nvidia stock climbed more than 1 percent, and Broadcom advanced 1.2 percent.
Hendi Susanto, a portfolio manager at Gabelli Funds, said AMD is positioned to gain from the large AI data center buildout. Bob O'Donnell, chief analyst at TECHnalysis Research, said the AMD numbers provided a needed lift for AI infrastructure and, to a smaller degree, for the PC market.
AMD earnings and the data center buildout
AMD has stepped up AI product rollouts, moving beyond standalone chips to compete with Nvidia rack scale systems. Its flagship Helios rack, which combines the MI455X accelerator and new Venice server chips, is in production and is set for a larger ramp-up in the fourth quarter. The first systems are being tested at Meta.
The AMD earnings report showed the limits of that strength as well. Sales in the client and gaming segment, home to PC chips and console processors, fell 8 percent to $3.72 billion, missing estimates of $3.79 billion. AMD said it expects PC unit shipments to decline by a double digit percentage next year, although Su said the company would outperform the market.
Adjusted gross margin is expected to be about 55 percent in the fourth quarter, in line with estimates of 55.27 percent and down from 56 percent in the third quarter. The AMD earnings report also noted the semiconductor industry is dealing with a global memory shortage, leaving expensive high bandwidth memory used in AI processors in short supply as manufacturers race to increase production.
What AMD earnings mean for the chip race
For investors, the AMD earnings release landed at a tense point. Shares in AI hardware companies had been under pressure, and doubts had grown about customer spending on data center equipment. A forecast of more than 80 percent revenue growth in 2027 cut against that doubt in direct terms.
The numbers also show how much of AMD now rests on one part of the business. Data center revenue of $8.55 billion is more than three fifths of total third quarter revenue of $13.38 billion. If Su is right that 80 percent of 2027 sales will come from data center chips, the company's fortunes will follow orders for those chips more closely than orders for PCs or consoles.
That concentration brings a plain risk. Memory supply is tight, and customers could slow orders if their own AI spending plans change.
Still, the third quarter figures and the fourth quarter guide both cleared the estimates analysts had set. Revenue of $13.38 billion beat the $13.09 billion estimate, adjusted profit of $2.09 per share beat the $1.95 estimate, and the fourth quarter revenue guide of about $17 billion beat the $16.23 billion estimate. The extended trading rise of about 8 percent showed how the market read those three beats together.