AMD has reached a historic milestone in the semiconductor market following its shareholder meeting regarding third-quarter 2026 financial results. The company recorded its highest quarterly revenue in history at $13.37 billion and projected approximately $17 billion for the fourth quarter. If these forecasts hold true, the brand led by CEO Lisa Su will surpass the revenue of rival Intel, which is estimated between $15 billion and $16 billion for the same period, for the first time since AMD's founding.
This significant growth is attributed to a strategic focus on artificial intelligence and cloud infrastructure. AMD's data center division surged 97% year-over-year, generating $8.55 billion in the quarter and accounting for 64% of the company's total revenue. This accelerated expansion is driven by strong adoption of Epyc processors and high demand for Instinct MI455X accelerators from major clients including Microsoft, Meta, OpenAI, and Oracle.
Despite record performance in the corporate sector, the consumer-focused segment showed signs of contraction. Combined revenue from the Client division, featuring Ryzen processors, and the Gaming division fell 8% year-over-year to $3.72 billion. The gaming sector experienced a sharp 40% decline due to reduced orders for custom chips for Sony and Microsoft consoles in this generation phase, alongside tepid sales of Radeon graphics cards.
During discussions with investors, Lisa Su outlined a challenging outlook for the PC industry in the coming years. Pressured by rising component costs, particularly the escalation in RAM memory prices, the global PC market is expected to face double-digit shipment declines in 2027. Nevertheless, AMD remains confident in the strength of its Ryzen lineup, which is set to receive Zen 6 models soon, aiming to continue gaining ground in high-performance desktops and the corporate market despite the general industry contraction.
Sources: Canaltech.