# AMD's Data Center Sales Nearly Double to $8.5 Billion, and It Tells Investors to Expect More Than 80% Revenue Growth in 2027

Times of AI Desk · 2026-11-04 · Infrastructure

[https://timesof.ai/2026/11/amd-q3-2026-data-center-revenue-up-97-percent-q4-17b-outlook](https://timesof.ai/2026/11/amd-q3-2026-data-center-revenue-up-97-percent-q4-17b-outlook)

> AMD said on November 3 that third-quarter revenue rose 45% to $13.4 billion, with data center revenue up 97% to a record $8.55 billion, and guided fourth-quarter revenue to about $17 billion. CEO Lisa Su told analysts AMD expects revenue to grow more than 80% in 2027, above the 77% analysts expected, Reuters reported. Shares rose 8% after hours, a week after AI chip stocks sold off. Gaming revenue fell 40% as memory shortages pushed up consumer prices.

AMD's quarter is a direct answer to last week's fear that AI chip demand was cresting: its data center business nearly doubled, and the company told investors 2027 will be bigger still. AMD reported **third-quarter revenue of $13.38 billion**, up **45%**, on **November 3**, with **data center revenue up 97% to a record $8.55 billion**, ahead of the $8.20 billion analysts expected, Reuters reported citing LSEG data.

## The outlook

AMD expects **fourth-quarter revenue of about $17 billion**, plus or minus 3%, above the $16.23 billion analysts had expected, according to Reuters. On the earnings call, CEO **Lisa Su** said AMD expects revenue to "grow more than 80 percent in 2027," adding that "data center will be the largest contributor," The Verge reported. Analysts had expected 77% growth, Reuters said. CFO **Jean Hu** said that looking ahead to 2027, AMD thinks data center "will be more than 80 percent of total company revenue," according to The Verge.

AMD's shares rose **8%** in extended trading, Reuters reported. AMD lost 10.9% in the [October 30 chip selloff](https://timesof.ai/2026/10/ai-chip-selloff-oct-30-nasdaq-100-worst-day-since-june-intel-29pct), when investors dumped AI suppliers.

## Margins and racks

Adjusted earnings were **$2.09 per share**, against estimates of $1.95, Reuters said; AMD reported GAAP earnings of **$1.46 per share**. AMD expects an adjusted gross margin of about 55% next quarter, down from 56% in the third quarter, according to Reuters. Its **Helios** rack, which combines the MI455X accelerator with "Venice" server chips, is in production ahead of a larger ramp in the fourth quarter, and the first systems are being tested at Meta, Reuters reported.

## The consumer side

Gaming revenue fell **40%** to $773 million, The Verge reported, as memory shortages driven by AI data centers push up prices for PCs and consoles. Su said AMD is "planning with the current environment for a down year for 2027" in consumer markets, according to The Verge, and AMD expects PC unit shipments to fall by a double-digit percentage next year, Reuters said.

## Limits

- The 2027 growth figure is a forecast Su gave on the call; AMD's release gives formal guidance only for the fourth quarter.
- Analyst estimates are LSEG figures as reported by Reuters.
- AMD has not said how much of its data center revenue comes from AI accelerators rather than server CPUs.

## Sources

- [AMD: AMD Reports Third Quarter 2026 Financial Results (November 3, 2026)](https://ir.amd.com/news-events/press-releases/detail/1303/amd-reports-third-quarter-2026-financial-results)
- [Reuters via StreetInsider: AMD forecast eases AI spending fears as data-center sales surge (November 3, 2026)](https://www.streetinsider.com/Reuters/AMD+forecasts+2027+sales+above+estimates+as+data-center+business+booms/27282243.html)
- [The Verge: AMD rides data center riches to 'largest and most profitable' quarter in history (November 4, 2026)](https://www.theverge.com/tech/1026148/amd-earnings-q3-2026-data-center-pc)