AMD Expects Data Center AI Revenue to Top Server CPU Sales in Q4

AMD expects revenue from its data center AI business to exceed server CPU revenue for the first time in the fourth quarter, signaling a change in the chipmaker’s revenue mix.

For Q4, the company projected total revenue of about $17 billion, a 66% year-over-year increase, and roughly 50% sequential growth in its data center segment.

The outlook followed record third-quarter revenue of $13.377 billion, up 45% from a year earlier. Non-GAAP earnings per share rose 74% to $2.09. Data center revenue climbed 97% to $8.5 billion, representing 64% of sales, compared with 47% in the same quarter a year ago.

AMD also expects total revenue to rise more than 80% in 2027, with data center operations accounting for over 80% of sales and server revenue doubling year over year. The company said demand remains ahead of supply and it is working with wafer, substrate, advanced-packaging and memory suppliers to expand capacity.

AMD’s 2027 planning assumes global PC shipments will fall by a double-digit percentage, while higher memory and component costs weigh on that market.