AMD revenue and business outlook exceed expectations, rising over

AMD reported third-quarter 2026 revenue of $13.38 billion, up 45% year over year and above the $13.09 billion consensus, with adjusted EPS of $2.09 versus $1.95 expected, sending shares up more than 9% after hours and lifting chip peers including Nvidia and SK Hynix. Data center revenue nearly doubled year over year to $8.5 billion, or 64% of total sales, up from 47% a year earlier. The company guided fourth-quarter revenue to about $17 billion, above the $16.2–16.3 billion consensus, though its 55% gross margin outlook came in slightly below the 55.3% expected. CEO Lisa Su said data center processor demand is expected to accelerate further and that AMD can meet AI chip demand. PC and gaming revenue fell 8% to $3.7 billion, with gaming down 40%, as memory chip supply tightness and rising prices weighed on the segment. Investors will watch whether AMD can sustain data center growth and meet AI chip demand while managing margin pressure and the memory-driven weakness in client and gaming.