AMD Stock Soars As Record Sales Hint Demand Is Speeding Up
AMD shares jumped 7.2% after the chipmaker said third-quarter revenue hit a record $13.4 billion and forecast about $17.0 billion for the fourth quarter, a sign demand is speeding up.
Key Takeaways
- AMD reported record third-quarter 2026 revenue of $13.4 billion, up 45% year over year.
- Data Center was the biggest segment at a record $8.5 billion, up 97%.
- Third-quarter net income was $2.4 billion and diluted EPS was $1.46, while non-GAAP diluted EPS was $2.09.
- AMD guided for about $17.0 billion in fourth-quarter revenue, plus or minus 3%, with non-GAAP gross margin of about 55%.
AMD shares surged in after-hours trading after the company posted a record quarter and pointed to another sharp jump in sales for the current period. AMD shares traded at $518.68 at 4:20 PM ET on Tuesday, up 7.2% from Tuesday’s close of $483.90.
In its reported results, AMD said third-quarter revenue was $13.4 billion, gross margin was 54%, operating income was $2.8 billion, net income was $2.4 billion, and diluted earnings per share was $1.46. On a non-GAAP basis, diluted earnings per share was $2.09. The company said, “We delivered a record quarter with revenue exceeding the high end of our guidance”.
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The biggest engine was Data Center, where revenue hit a record $8.5 billion, up 97% year over year. Client and Gaming segment revenue was $3.7 billion, down 8% year over year, as Client business revenue rose 7% to $2.9 billion but Gaming business revenue fell 40% to $773 million. Embedded segment revenue was $1.1 billion, up 29% year over year.
AMD also said non-GAAP earnings per share grew 74% year over year. The quarter marked broad growth, but the standout was the Data Center business, which was far larger than the other reported segments.
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $13.4 billion | $9.2 billion | Up 45% |
| Gross margin | 54% | 52% | Up 2 pts |
| Operating income | $2.8 billion | $1.3 billion | Up 123% |
| Net income | $2.4 billion | $1.2 billion | Up 95% |
| Earnings per share | $1.46 | $0.75 | Up 95% |
| Adjusted earnings per share | $2.09 | $1.20 | Up 74% |
| Business | Q3 2026 sales | Change |
|---|---|---|
| Data Center | $8.5 billion | Up 97% |
| Client (PC chips) | $2.9 billion | Up 7% |
| Gaming | $773 million | Down 40% |
| Embedded | $1.1 billion | Up 29% |
AMD Sees Another Huge Revenue Jump
For the fourth quarter of 2026, AMD expects revenue to be approximately $17.0 billion, plus or minus 3%. The company said the midpoint of that range represents year-over-year growth of approximately 66%, and it expects non-GAAP gross margin to be approximately 55%.
AMD also said, “Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter,” said Dr. Lisa Su, AMD chair and CEO.
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