Daily newsletter · Wed 4 Nov 2026
AMD's data centre sales nearly doubled, and it has guided to US$17 billion for this quarter
AMD reported revenue of US$13.38 billion for the September quarter, up 45% on a year earlier and above the top of its own guidance. Adjusted earnings came in at US$2.09 a share, up 74%, against the US$1.95 analysts expected.
So was it the PC chips? No. The data centre division sold US$8.55 billion of chips, up 97%, while the client business behind PC processors grew 7%, gaming fell 40% and embedded grew 29%. Data centre revenue is now more than twice client and gaming put together.
The forecast did more work than the quarter. AMD guided to about US$17 billion of revenue for the December quarter, give or take 3%. That is roughly 66% growth on a year earlier, and about a quarter more than it has just booked.
The shares closed at US$483.90 on Tuesday, up 3.65%, and added about 7% more in after-hours trading. They had fallen 7.52% on Monday, a day the whole chip sector sold off.
gaming is shrinking and PC chips are barely growing, so nearly all of AMD's growth now comes from one division selling to a short list of buyers. Our read is that the question has shifted from whether AI demand is real to how long those buyers keep writing cheques.
More in
All stories →- Friday 23 October Lam Research fell 11.76% after saying it could not get enough parts, and chip stocks followed
- Friday 16 October TSMC made a record profit and raised its sights, and its shares still fell 1.8%
- Wednesday 14 October Applied Materials gave no spending forecast, and its shares fell 6.69%
General information and commentary only, not financial advice. It does not take account of your objectives, financial situation or needs, and reflects the author's own reading of public information at the time of writing, which may be wrong. Sharespective, its people and its clients may hold positions in the companies covered. Do your own research and talk to a licensed adviser.