AMD expects to outsell Intel in Q4 for the first time in history

AMD reported its highest quarterly revenue ever, fueled by strong demand for Epyc data center processors and Instinct artificial intelligence accelerators. The company's robust financial performance highlights a major shift in the semiconductor industry as its growth accelerates.

• AMD's third-quarter revenue reached $13.377 billion, with net income surging by 95% to $2.43 billion.
• The Data Center business hit a record $8.55 billion in sales, up 97% year-over-year.
• AMD projects Q4 revenue to reach approximately $17 billion, putting it ahead of Intel for the first time.
• CEO Lisa Su expects data center operations to account for over 80% of total revenue by 2027.

Data Center surge and AI accelerators

The primary growth driver for AMD was its Data Center business unit, where operating income surged by 168% to $2.88 billion. This impressive performance is attributed to strong demand for the latest Epyc processors and the rollout of Instinct MI455X AI accelerators powering Helios rack-scale systems.

Major technology players including Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are already utilizing these Helios systems for workloads. AMD projects server CPU revenue to double in 2027, with data center AI accelerator revenue growing even faster, cementing the unit's dominance in the company's portfolio.

Client and Gaming segment performance

While data center operations experienced massive growth, AMD's Client and Gaming business unit generated $3.722 billion, down 8% year-over-year. Sales of client CPUs saw a slight decline from the previous quarter, while gaming product sales dropped due to lower console SoC purchases by Microsoft and Sony.

Despite high memory prices putting pressure on PC demand, AMD plans to outperform the broader market by focusing on commercial, enterprise, and premium consumer desktop processors. The company expects the client and gaming sector to contract further in the fourth quarter.

Historical milestone against Intel

Perhaps the most significant announcement from AMD's earnings report is its outlook for the fourth quarter, expecting revenue of approximately $17 billion. In contrast, Intel projects Q4 revenue between $15 billion and $16 billion amid manufacturing capacity constraints and weakening PC demand.

If AMD meets this guidance, its quarterly sales will surpass those of its larger rival Intel for the first time in history. This milestone reflects the starkly different trajectories of the two companies, with AMD rapidly scaling its data center and AI business while Intel faces ongoing headwinds in traditional segments.