AMD Data Center Revenue Nearly Doubles as MI450 Ramp Drives Record Q3
As seen on the 24/7 Wall St. homepage on November 3, 2026.
Data Center revenue nearly doubled to $8.55 billion as the Instinct MI450 ramp kicked in, and management guided Q4 revenue to roughly $17 billion. That acceleration is what moves the stock tonight.
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Advanced Micro Devices posted adjusted earnings of $2.09 per share for the third quarter of 2026, beating the consensus estimate of $1.94. That extended AMD's streak of exceeding EPS expectations to four consecutive quarters, and CFO Jean Hu pointed out that non-GAAP EPS growth of 74% outpaced the company's already-strong revenue growth of 45% year over year, a sign that operating leverage is building.
The headline number driving after-hours attention is the Data Center segment, which generated $8.55 billion in revenue, nearly doubling year over year. The ramp of Instinct MI450 Series GPUs combined with continued demand for EPYC server processors was the primary engine. Data Center operating margin expanded to 34% from 25% a year earlier, meaning the segment is becoming more profitable as it scales.
Total revenue came in at $13.38 billion, topping the $13.08 billion Wall Street consensus by about 2% and exceeding the high end of AMD's own guidance range. CEO Lisa Su noted the quarter set a company record, with results coming in above the high end of the company's own guidance. That outperformance across both top-line and earnings metrics is what has the stock moving tonight.
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For the fourth quarter, AMD guided revenue to approximately $17 billion, plus or minus 3%, implying year-over-year growth of about 66% and sequential growth of about 27%. Major customers including Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are already running workloads on the first Helios rack-scale systems, providing a visible demand base behind that guidance.
Not every segment shared in the momentum. Gaming revenue fell 40% year over year to $773 million on lower semi-custom and graphics sales, and free cash flow declined sharply to $554 million as capital expenditures rose 151% year over year to $648 million, reflecting the investment cycle required to support rapid Data Center expansion. Inventory rose 35% sequentially, a figure investors will want to monitor as the MI450 ramp matures.
AMD also disclosed agreements to acquire World Labs for model research expertise and Taalas for specialized inference silicon technology, though both deals remain subject to closing. The company completed a $4.75 billion senior notes offering in August, adding to obligations even as the operating business accelerates into what management called very strong revenue growth and expanding profitability over the coming years.
Mentioned: AMD