AMD expects to generate approximately $17 billion in revenue for Q4 2026, outpacing Intel's guidance of $15-$16 billion amid rapidly growing sales of AI-focused Epyc processors and Instinct accelerators.
- AMD projects $17B revenue in Q4 2026 versus Intel’s $15-$16B
- Data center sales nearly doubled year-over-year, reaching $8.5B in Q3
- AI accelerators Instinct outselling server CPUs expected in Q4
What happened
AMD announced guidance for Q4 2026 revenue of approximately $17 billion, reflecting a substantial increase compared to the third quarter and surpassing Intel's forecast of $15 to $16 billion for the same period. This marks the first time in the history of their rivalry that AMD expects to outsell Intel in a single quarter. AMD's third-quarter revenue rose by 45% year-over-year to $13.4 billion, driven primarily by its data center business.
The data center segment accounted for 64% of AMD’s total sales in Q3, with revenue rising 97% to a record $8.5 billion. This rapid growth was fueled by strong demand for AMD’s 2nm Epyc processors and Instinct MI455X AI accelerators, deployed by major customers including Anthropic, Meta, Microsoft, OpenAI, and Oracle. AMD also reported growing embedded chip sales and a mixed gaming segment. Meanwhile, Intel's figures were impacted by a production disruption at its Israeli plant.
Why it matters
AMD surpassing Intel in quarterly revenue is a significant milestone in a decades-long competition between the two chipmakers. The shift highlights AMD's effective positioning in the AI and data center markets, where demand for high-performance computing accelerators and new-generation CPUs is rapidly expanding. AMD's data center operating margin also widened to 34%, underscoring the profitability of this growth segment.
This milestone is especially noteworthy because AMD's revenue mix includes AI accelerators and embedded systems that Intel does not offer at a comparable scale, complicating direct comparisons but illustrating AMD's diversified growth strategy. Intel still dominates overall x86 processor market share, but AMD's advances, particularly in AI workloads, demonstrate its rising influence and ability to capitalize on emerging technology trends ahead of analyst expectations.
What to watch next
Looking ahead to Q4 2026, AMD’s CFO has forecast a 50% sequential increase in data center revenue, with AI accelerator sales set to outpace its server CPU shipments for the first time by a wide margin. This will be a key indicator of AMD’s continued momentum in the AI computing sector. However, client and gaming revenues are expected to decline somewhat, reflecting a mixed outlook outside the data center segment.
Investors and market observers will also be monitoring Intel’s recovery from its Israeli plant explosion and its broader strategy to reclaim market share. Despite AMD’s revenue lead in Q4, the overall market remains competitive with evolving demand dynamics. AMD’s ability to maintain growth and expand high-margin AI product sales will be critical to sustaining its newfound leadership position against Intel.