AMD Raises Fourth-Quarter Sales Forecast Above Wall Street Expectations

Advanced Micro Devices (AMD) has issued a stronger-than-expected fourth-quarter revenue forecast after reporting record financial results for the third quarter of 2026. The semiconductor company expects revenue to reach approximately $17 billion, plus or minus 3 per cent, exceeding analysts’ average estimate of $16.23 billion. The forecast represents approximately 66 per cent year-over-year growth, reflecting increasing demand for its artificial intelligence chips and data centre processors. Following the announcement, AMD shares climbed in after-hours trading.

For the third quarter, AMD generated $13.38 billion in revenue, representing a 45 per cent increase compared with the same period last year. Its data centre division delivered particularly strong performance, with revenue surging 97 per cent to a record $8.55 billion. The growth was driven by demand for AMD EPYC server processors and Instinct graphics processing units, which are increasingly being adopted by companies expanding their artificial intelligence infrastructure. Adjusted earnings reached $2.09 per share, beating analysts’ expectations of $1.95.

Chief Executive Officer Lisa Su said demand for the company’s Instinct and EPYC products continued to strengthen, with further growth expected as AMD expands production of its Helios and Venice platforms. The company is also positioning its integrated Helios rack-scale system to compete more directly with Nvidia’s AI infrastructure offerings. Initial Helios systems are already being tested at Meta, with broader production expected to increase during the fourth quarter. AMD also anticipates overall revenue growth of more than 80 per cent in 2027, supported primarily by its expanding data centre business.

Despite the positive outlook, AMD faces challenges, including a global shortage of high-bandwidth memory used in advanced AI processors. Its client and gaming segment also experienced an 8 per cent revenue decline during the third quarter, while management expects PC shipments across the industry to fall by a double-digit percentage in 2027. Nevertheless, the company’s strong data centre performance and expanding partnerships with major technology firms strengthen its position in the competitive AI semiconductor market. Its next challenge will be maintaining production capacity while competing against Nvidia and other chipmakers for a growing share of global AI spending.