AMD Forecasts Q4 Revenue to Surpass Intel for First Time
AMD projects $17 billion in quarterly revenue, outpacing Intel amid data center growth.
1Historic Revenue Milestone
AMD projects fourth-quarter revenue of approximately $17 billion, potentially surpassing Intel for the first time in history. Intel currently forecasts its own quarterly revenue between $15 billion and $16 billion. This shift highlights a major realignment in the semiconductor landscape as AMD gains significant momentum over its long-standing industry rival.
2Data Center Dominance
The Data Center unit reached a record $8.55 billion in revenue, marking a 97% increase year-over-year. Operating income for this segment surged 168% to $2.88 billion, with margins expanding from 25% to 34%. This growth is driven by strong demand for Epyc processors and the new Instinct MI455X AI accelerators.
3Strategic AI Partnerships
AMD reported that major technology firms are already running workloads on its Helios rack-scale systems. Key customers include Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure. These partnerships are central to the company's strategy to scale its AI accelerator deployments and secure a larger footprint in the enterprise cloud market.
4Client and Gaming Decline
The Client and Gaming segment generated $3.722 billion, reflecting an 8% year-over-year decline. Gaming product sales dropped significantly as Microsoft and Sony reduced console SoC purchases. AMD expects this segment to contract by over 20% sequentially in Q4 2026, citing high memory prices and weakening demand for personal computers.
5Embedded Business Growth
AMD's Embedded business grew 29% year-over-year to $1.11 billion, with operating income rising 60% to $453 million. This performance was bolstered by demand from aerospace, defense, automotive, and industrial sectors. The company expects double-digit sequential growth in Q4 2026 and sustained annual revenue increases over the next several years.
6Future Revenue Projections
AMD anticipates its Data Center unit will contribute over 80% of total company revenue by 2027. The company projects server CPU revenue to double in 2027, while AI accelerator and rack revenue are expected to more than double. These targets underscore a pivot away from consumer-focused hardware toward high-growth enterprise infrastructure.
7Market Position Divergence
The current market dynamic reflects a divergence between the two companies. While AMD aggressively expands its data center and AI capabilities, Intel remains heavily reliant on PC and enterprise server processors. Intel continues to face significant headwinds, including manufacturing capacity constraints and a cooling market for traditional client-side computing hardware.
8Long-term Industry Impact
AMD’s projected lead of $1.5 billion over Intel represents a tangible shift in competitive standing. By focusing on premium enterprise processors and AI-driven infrastructure, AMD is successfully offsetting declines in the PC market. This transition marks a pivotal moment in the semiconductor industry, signaling a new era of market leadership.
Original article: Hacker News: Front Page — AMD Forecasts Q4 Revenue to Surpass Intel for First Time