AMD outpaces Intel as data-center demand drives growth

AMD reported third-quarter 2026 revenue of $13.4 billion, up 45% year over year, compared with Intel’s $16.5 billion, up 21%. Intel remains the larger chipmaker by revenue, but AMD is expanding faster as demand for AI accelerators and server processors strengthens.

AMD’s data-center revenue rose 97% to a quarterly record of $8.55 billion, supported by EPYC server processors and Instinct AI accelerators. Intel’s Data Center and AI business grew 78% to $7.3 billion. CPUs remain essential alongside GPUs, coordinating workloads, managing data and running the broader systems supporting AI computing.

AMD CEO Lisa Su expects server CPU revenue to double in 2027 and Data Center AI revenue to grow significantly more than double. Intel CEO Lip-Bu Tan said Xeon demand remains robust, with expanding supply an immediate priority. Intel warned that industry-wide supply constraints could persist into next year.

Weakness outside data centers affected both companies. Intel’s Client Computing and Physical AI Group revenue declined 5% to $8.1 billion, while AMD’s client and gaming revenue fell 8% to $3.7 billion. AMD forecast fourth-quarter revenue of approximately $17 billion, representing roughly 66% annual growth at the midpoint. Sustaining that momentum will depend on translating server and accelerator demand into market-share gains and stronger profitability.