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AMD guides Q4 to about $17B, which would outsell Intel for the first time

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AMD guides Q4 to about $17B, which would outsell Intel for the first time

AMD reported the highest quarterly revenue in its history late on Tuesday, according to Tom's Hardware. Third-quarter revenue was $13.377 billion, against $9.25 billion in the same quarter a year earlier and $11.54 billion in the previous quarter. Gross margin was 54%, net income rose 95% to $2.43 billion, and diluted earnings per share were $1.46, up from $0.75 a year ago.

The Data Center unit drove the result. Its sales hit a record $8.55 billion, up 97% from $4.34 billion a year earlier and 27% sequentially. Operating income jumped 168% to $2.88 billion, and operating margin widened from 25% to 34%. AMD credited strong demand for its latest Epyc processors and the launch of Instinct MI455X accelerators, which power its Helios rack-scale systems. It said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are already running workloads on their first Helios systems. Data Center now makes up 64% of AMD's revenue, up from 47% in Q3 2025.

The Client and Gaming unit went the other way. Revenue was $3.722 billion, down 8% year over year and 3% from the prior quarter. Client CPU sales came to $2.95 billion, down from $3.06 billion in the previous quarter but up about $200 million from $2.75 billion a year earlier. Gaming products, which cover discrete GPUs and console chips, fell to $773 million from $1.298 billion a year before, because Microsoft and Sony bought fewer console SoCs and Radeon RX GPU sales stayed weak. The combined segment's operating income dropped 34% to $573 million, and its operating margin fell to 15%. The Embedded unit grew 29% year over year to $1.11 billion, with operating income up 60% to $453 million, on stronger demand from aerospace and defense, automotive, communications and industrial customers.

The forward guidance is the headline. AMD expects Q4 revenue of approximately $17 billion, plus or minus 3%, which implies 66% growth year over year and 27% sequentially at the midpoint. Data Center revenue is guided to rise from $8.55 billion in Q3 to about $12.8 billion in Q4, on the ramp of MI455X and Helios. Client and Gaming is projected to contract by more than 20% sequentially in Q4 as higher memory prices weaken PC demand. Embedded is expected to grow by double digits sequentially in Q4, then by double digits annually over the next several years.

Intel, by contrast, expects Q4 revenue of $15 billion to $16 billion, amid weakening PC demand and manufacturing capacity constraints. Tom's Hardware says that if AMD meets its guidance, its quarterly sales will pass those of its considerably bigger rival for the first time in history, with a lead of about $1.5 billion at the midpoint of both forecasts. The article frames the gap as a sign of diverging positions: AMD is expanding fast in data center CPUs and AI accelerators, while Intel still leans heavily on PC and enterprise server processors, which face headwinds from high memory prices and component shortages.

Looking to 2027, CEO Lisa Su said AMD now expects server revenue to double year over year and data center AI revenue to grow even faster than projected ninety days earlier. AMD projects server CPU revenue to double and Data Center AI accelerator and rack revenue to more than double, pushing Data Center to over 80% of total company sales. Su also said AMD is planning for PC market unit shipments to decline by a double-digit percentage in 2027, and that it expects to outperform the market by focusing on enterprise, premium consumer and desktop processors. AMD gave no specific 2027 revenue forecast for Client and Gaming. On design wins, Su said the company remains on track to close more than eighteen billion in 2026, its third consecutive record year.

Key facts

  • AMD's Q3 revenue was a record $13.377 billion, versus $9.25 billion a year earlier; net income rose 95% to $2.43 billion and gross margin was 54%.
  • Data Center revenue hit $8.55 billion (up 97% year over year) and is now 64% of AMD's total, up from 47% in Q3 2025.
  • AMD guides Q4 revenue to about $17 billion, plus or minus 3%, against Intel's own outlook of $15 billion to $16 billion; the first-ever lead over Intel holds only if AMD meets guidance.
  • Client and Gaming fell 8% year over year to $3.722 billion and is projected to shrink by more than 20% sequentially in Q4 as memory prices weigh on PC demand.
  • Lisa Su expects server revenue to double in 2027 and Data Center to exceed 80% of revenue, while planning for a double-digit decline in PC unit shipments.

Why it matters

A quarterly revenue lead over Intel would be a first in the two companies' history, according to Tom's Hardware, which calls the Q4 outlook arguably the most earth-shattering part of the report. The gap comes from the AI build-out: AMD's Data Center unit now brings in 64% of revenue and is guided to about $12.8 billion in Q4, while Intel leans on PC and enterprise server chips that face weaker demand. AMD also says its MI455X accelerators and Helios racks are in use at Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure.

Who it affects

Investors and analysts tracking the AMD and Intel rivalry are the first audience. Data center buyers are affected too, since the named Helios customers are already running workloads. PC makers and buyers feel the other side: AMD expects higher memory prices to weaken PC demand and plans for a double-digit decline in PC unit shipments in 2027. Microsoft and Sony bought fewer console chips, which hit AMD's gaming revenue.

How to use it

Read the Q4 comparison as guidance against guidance: AMD's roughly $17 billion (plus or minus 3%) against Intel's $15 billion to $16 billion. Even the low end of AMD's range, about $16.5 billion, sits above the top of Intel's. Watch the actual Q4 figures for both companies, the Data Center ramp toward about $12.8 billion, and whether Client and Gaming shrinks by the projected 20% or more.

How solid is it

The financial figures come from AMD's earnings report and call as relayed by Anton Shilov, a contributing writer at Tom's Hardware, and are specific and internally consistent. The Intel milestone is conditional: it holds only if AMD meets its guidance, and the article does not say AMD has already passed Intel. Intel's $15 billion to $16 billion is described as its expectation, not a result. The Q4 Data Center figure of about $12.8 billion is derived from company guidance per the article.

Risks and caveats

The comparison rests on forecasts from both sides, and AMD's range allows 3% either way. The article gives no calendar date for the report beyond 'late on Tuesday', no prices or specs for MI455X or Helios, and no size for any customer order. AMD's growth is concentrated in one segment while Client and Gaming declines, and AMD gave no 2027 revenue forecast for that segment. Reader comments under the article, including claims of circular spending, are opinion and not part of the reporting.

“We now expect server revenue to double year over year in 2027 and data center AI revenue to grow even faster than we projected ninety days ago”

— Lisa Su, chief executive and chairman of AMD, on the earnings call