AMD earnings call: Q4 data center AI revenue to surpass server CPU for the first time, total revenue growth to exceed 80% by 2027

BlockBeats news, November 4 — AMD held a conference call after announcing its Q3 2026 financial results. AMD expects data center AI business revenue to exceed server CPU business revenue for the first time in Q4 2026, with total data center segment revenue projected to grow approximately 50% quarter-over-quarter. The company expects total Q4 revenue of approximately $17 billion, up about 66% year-over-year.

AMD's Q3 revenue grew 45% year-over-year to $13.377 billion, a record quarterly high, beating analyst expectations by approximately 2.3%; non-GAAP earnings per share rose 74% year-over-year to $2.09, exceeding expectations by more than 6%; gross margin was 56%, up 190 basis points year-over-year. Data center revenue grew 97% year-over-year to $8.5 billion, rising from 47% of total revenue in the year-ago period to 64%.

AMD CEO Lisa Su expects total company revenue to grow more than 80% year-over-year in 2027, with the data center business accounting for more than 80% of total revenue, and server business revenue projected to double year-over-year. She stated that demand currently still exceeds supply, and the company is working with wafer, substrate, advanced packaging, and memory suppliers to expand capacity. AMD CFO Jean Hu expects operating expense growth in 2027 to be less than half of revenue growth, with operating margin improving significantly.

Lisa Su stated that AI agents are becoming the "next killer app" for cloud CPUs, driving demand for accelerators while also boosting server CPU demand. By contrast, the PC market faces pressure from rising memory and other component costs. Lisa Su said AMD's 2027 planning assumes a double-digit percentage decline in global PC shipments, and the company will focus on enterprise, high-end consumer, and desktop channels.