# AMD Poised to Overtake Intel in Quarterly Chip Revenue Record data center growth positions AMD to surpass Intel's quarterly revenue for the first time. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-11-05 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/9e6bd15c-f889-49ca-9f53-6c1e2890b917 ## Historic Revenue Milestone AMD reported record third-quarter revenue of $13.4 billion, a 45 percent year-over-year increase. The company now forecasts approximately $17 billion for the current quarter. If achieved, this performance would surpass Intel’s projected $15 billion to $16 billion range, marking the first time AMD leads its rival in quarterly chip sales revenue. ## Data Center Dominance The Data Center segment served as the primary growth engine, with revenue nearly doubling to $8.5 billion. This division now accounts for approximately 64 percent of total company revenue. Operating income for this unit rose significantly to $2.9 billion, driven by strong demand for EPYC server processors and Instinct MI450 GPU launches. ## Strategic AI Partnerships Major technology firms including Meta, Microsoft, OpenAI, Oracle, and Anthropic are currently running workloads on AMD’s Helios racks. Meta confirmed its infrastructure is operational, following AMD’s commitment to invest $1 billion in the company. These partnerships underscore AMD's expanding footprint in the competitive artificial intelligence and cloud computing hardware markets. ## Gaming Segment Decline While data center performance soared, gaming revenue dropped 40 percent to $773 million. AMD attributed this decline to lower semi-custom chip sales, which power game consoles, noting the current stage of the console cycle. Despite this, the company maintains a focus on high-margin segments to offset broader volatility in consumer electronics. ## Client and PC Growth Client revenue, primarily driven by Ryzen mobile processors, rose 7 percent to $2.9 billion. AMD is shifting focus toward commercial enterprise adoption, with large banks, automotive, and healthcare firms integrating Ryzen PRO PCs. This strategy targets higher-profit corporate buyers rather than relying on the shrinking small business and retail PC markets. ## Supply Chain Assurance CEO Lisa Su confirmed that AMD has secured the necessary wafers, advanced packaging, and memory components to support aggressive growth targets. The company is deepening collaborations with supply chain partners to ensure long-term capacity. This proactive investment strategy aims to prevent bottlenecks as AMD scales its data center CPU and AI businesses. ## Financial Performance Metrics Operating income more than doubled to $2.8 billion, while net income rose 95 percent to $2.4 billion. However, free cash flow declined to $554 million from $1.53 billion, impacted by $3 billion in inventory accumulation and a doubling of capital expenditures to $648 million. Gross margins are expected to narrow slightly to 55 percent. ## Future Growth Outlook AMD projects company-wide growth exceeding 80 percent next year, with data center AI revenue expected to more than double. While Intel remains a major player through its foundry operations, AMD is positioning itself as the leading provider of x86 processors. Investors responded positively, with share prices rising following the earnings announcement. ## Sources covering this story - [www.theregister.com - Articles — AMD Poised to Overtake Intel in x86 Processor Revenue](https://www.theregister.com/systems/2026/11/04/amd-on-track-to-overtake-intel-as-biggest-x86-outfit/5307448) - [www.theregister.com - Articles — AMD Poised to Overtake Intel in x86 Processor Revenue](https://www.theregister.com/systems/2026/11/04/amd-on-track-to-overtake-intel-as-biggest-x86-outfit/5307448) - [Inc.com — AMD Revenue Surges 45 Percent Amid AI Market Expansion](https://www.inc.com/phil-rosen/amd-chipmaker-revenue-earnings-stock-market-data-center-sales/91430089) - [The Next Web — AMD Forecasts Revenue Milestone Surpassing Intel for First Time](https://thenextweb.com/news/amd-earnings-q3-2026-17bn-forecast-outsell-intel) - [Tech - Ars Technica — AMD Hits Record Revenue as Data Center Growth Outpaces Gaming Decline](https://arstechnica.com/gadgets/2026/11/amds-record-quarter-data-center-business-doubles-while-gaming-craters/) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._