Nearly two-thirds of AMD's revenue now comes from data center.

Nearly two-thirds of AMD's revenue now comes from data center. That share was 64% in Q3, up from 47% a year ago, and it's the number I keep coming back to from last night's report.

The headline beat was clean. Revenue came in at $13.38B against a $13.10B consensus, up 45% year over year, and adjusted (non-GAAP) EPS was $2.09 versus $1.95 expected. Data center hit a record $8.5B, up 97%, driven by EPYC server CPUs and the launch of the Instinct MI450 GPUs. Gaming went the other way, falling 40% to $773M. Embedded grew 29% to $1.1B.

The guide is what got my attention. AMD is calling for roughly $17B in Q4, above the $16.2B analyst average, which works out to about 66% growth at the midpoint, with gross margin around 55%. Lisa Su says she expects data center processor growth to accelerate further. Shares rose more than 7% after hours from a $483.90 close, on top of a stock that has already more than doubled this year.

My read is that the customer list matters as much as the revenue line. AMD says Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are all running workloads on its first Helios rackscale systems. At some point the market has to stop treating AMD as the Nvidia backup and start pricing it as a core AI supplier. Is this the quarter that happens?

$AMD

Sources:
SiliconReport: https://www.siliconreport.com/amd-reports-third-quarter-earnings-beat-as-revenue-jumps-45
The Star (Reuters): https://www.thestar.com.my/tech/tech-news/2026/11/04/amd-forecasts-quarterly-revenue-above-estimates-as-data-center-growth-accelerates

Not financial advice. For informational and educational purposes only.