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AMD reported $8.5 billion in data center revenue for the quarter ended September 26, up 97% from a year earlier and about 64% of total revenue. Separately, Australia’s central bank cited AI-related investment as a factor in rising technology goods prices when it raised its cash rate; AMD’s 2027 growth projections remain company forecasts.
AMD’s quarter ended September 26, 2026. Total revenue was $13.4 billion, up 45% year over year and 16% from the second quarter. Data center revenue rose from $4.3 billion a year earlier and $6.7 billion in the prior quarter. Segment operating income increased to $2.9 billion from $1.1 billion a year earlier. AMD Chief Financial Officer Jean Hu said the data center segment’s share of revenue was up from 58% in the second quarter; Chief Executive Lisa Su said it was 47% a year earlier.
The data center segment includes AI accelerators, server processors, networking and programmable chips. AMD attributed growth to demand for its EPYC server processors and the launch of its Instinct MI450 accelerators. The company said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on its first Helios rack-scale systems. These are company statements about its products and customers.
Results elsewhere were mixed: client and gaming revenue fell 8% to $3.7 billion, with gaming down 40%, while embedded revenue grew 29% to $1.1 billion. AMD forecast fourth-quarter revenue of about $17 billion, plus or minus 3%. In prepared remarks, it also projected that server revenue would double in 2027, total revenue would grow by more than 80%, and data center would exceed 80% of revenue. Those are forecasts, not reported results.
What AMD’s results reveal about AI demand
AMD’s data center business grew sharply, while Australia’s central bank linked AI investment to rising technology goods prices. These are related signals, not proof that AMD caused Australian price pressures.
AMD’s business is shifting
Data center made up a larger share of sales than in earlier periods.
Growth comes with exposure
AMD reported strong data center demand alongside pressures and risks for the wider business.
- EPYC server processor demand
- Instinct MI450 accelerator launch
- Helios systems running customer workloads
- Inventory rose to $11.5 billion
- Advance purchase commitments expose AMD if demand falls short
- Higher component costs weighed on PC demand
What the RBA said
The Reserve Bank of Australia connected AI investment with technology goods prices in its own assessment.
The RBA said AI-related investment was driving rapid growth in technology goods prices.
The bank raised its cash rate to 4.85% in a 6–3 vote.
The supplied information does not quantify AI’s contribution or show that AMD drove Australian price pressures.
Forecasts are not results
AMD projected more than 80% total revenue growth and a data center share above 80% in 2027. Those are management forecasts, not reported outcomes.
AI Demand Reaches Beyond Chip Sales
AMD’s results offer a measurable view of how strongly demand for data center hardware is shaping the company’s business: the segment now accounts for about 64% of sales, compared with 47% a year earlier. But the figures describe AMD, not the entire AI industry, and do not by themselves establish how profitable or durable future AI spending will be.
The RBA decision points to a separate consequence. The bank said AI-related investment was driving rapid growth in prices for technology-related goods. Governor Michele Bullock said demand for AI investment was “outstripping savings,” putting upward pressure on the neutral interest rate. The RBA raised its cash rate to 4.85% in a split 6-3 vote, its highest level since late 2008. That makes the connection between AI investment and price pressure an attributed central-bank assessment, not a conclusion drawn from AMD’s earnings alone.
AMD also disclosed risks that sit alongside the growth. Inventory rose by about $3 billion in one quarter to $11.5 billion, and free cash flow was $554 million. Its filing says long-term purchase commitments made ahead of demand can create risk if estimates prove wrong. The company also said higher memory and component costs weighed on PC demand. Together, the disclosures show how investment plans, supply costs and demand estimates can affect both technology firms and buyers.
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The RBA’s November 3 statement said “AI-related investment is driving rapid growth in prices for technology-related goods.” It raised the cash rate to 4.85%, with six members voting in favor and three against. Bullock’s comments about investment demand outstripping savings provided the bank’s stated explanation for how AI spending relates to its view of interest rates.
AMD released its third-quarter results on November 3 and filed its quarterly report with the U.S. Securities and Exchange Commission on November 4. The quarter’s roughly 64% data center revenue share is higher than the 58% figure for the second quarter. The distinction matters because some reports published before the third-quarter results referred to the earlier 58% share.
Other disclosures describe how AMD is financing and preparing for demand. In August, it borrowed $4.75 billion through bonds carrying interest rates from 4.6% to 5.5%. It also issued warrants to OpenAI and Meta for up to a combined 320 million shares, subject to vesting and exercise conditions. Those arrangements tie the companies more closely, but the filing does not establish how many shares will ultimately be issued.
““AI-related investment is driving rapid growth in prices for technology-related goods.””
— Reserve Bank of Australia
Forecasts and Demand Risks Remain
AMD’s projections for 2027 are management forecasts; the results have not yet occurred. The company’s disclosures do not show whether customer demand, product launches or supply conditions will support those projections. Its advance purchase commitments and higher inventory also leave it exposed if demand falls short of its estimates.
The RBA’s statement identifies AI-related investment as a factor in technology goods price growth, but the available material does not quantify how much of that growth is attributable to AI or how it contributed to the rate decision relative to other factors. It also does not establish that AMD’s reported growth caused the Australian price pressures. The two developments are connected by the RBA’s assessment of AI investment, not by evidence that AMD directly drove Australia’s inflation.
AMD’s Fourth-Quarter Results Ahead
AMD’s next reported results will show how its fourth-quarter revenue compares with its approximately $17 billion forecast and whether data center demand continues to grow. Investors and customers will also be able to compare actual results with management’s 2027 projections, while tracking the company’s inventory, purchase commitments and PC market outlook.
The RBA’s November 3 decision sets the current cash rate at 4.85%. The supplied information does not specify a date for its next decision. Until further data and statements are available, the scale of AI’s contribution to technology prices and its effect on future policy remain open questions.
Key Questions
How much did AMD’s data center revenue grow?
It reached $8.5 billion in the third quarter ended September 26, 2026, up 97% from $4.3 billion a year earlier.
About 64% in the third quarter, compared with 58% in the second quarter and 47% a year earlier, according to company statements.
What did Australia’s central bank say about AI?
The RBA said AI-related investment was driving rapid growth in prices for technology-related goods. It raised its cash rate to 4.85% on November 3 in a 6-3 vote.
Has AMD confirmed its 2027 growth projections?
No. The projected doubling of server revenue, growth of more than 80% in total revenue and data center share above 80% are company forecasts, not completed results.
Are the AMD results and Australian rate decision directly linked?
The RBA itself cited AI investment as a factor in technology goods price growth. The available information does not show that AMD’s results caused Australian price pressures or the rate decision.
Source: Thorsten Meyer AI
