Chipmaker AMD forecasts Q4 revenue above estimates on strong data center demand; shares rise

What happened

AMD forecast fourth-quarter revenue of approximately $17, plus or minus 3%, above analysts’ estimate. The company cited strong data center demand. Third-quarter revenue rose 45% year over year, adjusted earnings per share grew 74%, and data center revenue nearly doubled, offsetting a 40% gaming decline.

Confirmed

Global impact / market context

The forecast points to data center sales as a major growth driver for AMD. If demand for its processors and GPUs continues, that can support revenue and earnings growth; the gaming decline shows that weakness in one business can partly offset gains elsewhere.

Analyst inference

The forecast points to strong expected growth, with the midpoint implying about 66% year-over-year and 27% sequential revenue growth. Data center demand is supporting AMD’s outlook, while the gaming decline shows that growth is uneven across its businesses and may depend increasingly on data center sales.

Analyst inference

What to watch

1. Watch whether fourth-quarter revenue meets AMD’s forecast, and whether the company continues to identify data center demand as the main driver of growth. Analyst inference
2. Track demand for EPYC processors and Instinct MI450 Series GPUs; AMD said these drove record data center revenue, making continued sales important to its growth outlook. Confirmed
3. Watch gaming revenue and AMD’s expected fourth-quarter 2026 non-GAAP gross margin, meaning sales left after direct costs; weakness could offset gains elsewhere. Confirmed

Evidence

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