AMD Set to Outsell Intel for First Time in Q4 With $17B Guidance

A historic revenue flip

AMD's Q4 guidance of $17 billion would put it ahead of Intel for the first time, a symbolic changing of the guard in the CPU market.

AMD late Tuesday reported its highest quarterly revenue ever and guided to approximately $17 billion for the fourth quarter. That figure would surpass Intel's own projections, according to Tom's Hardware, marking the first time AMD has outsold its rival in a quarter.

The milestone caps a years-long turnaround. AMD's Q3 revenue reached $13.377 billion, up from $9.25 billion a year earlier, while net income jumped 95% to $2.43 billion. Gross margin held at 54%, and diluted earnings per share hit $1.46, more than double last year's $0.75.

Data center is doing the heavy lifting

AMD's Data Center unit brought in a record $8.55 billion, nearly doubling year-over-year and now representing 64% of total revenue.

The data center business is the engine. Sales for the unit hit $8.55 billion, up 97% from $4.34 billion a year earlier and 27% sequentially. Operating income for the segment surged 168% to $2.88 billion, with operating margin expanding from 25% to 34%.

AMD credits demand for its Epyc server processors and the launch of Instinct MI455X AI accelerators, which power its Helios rack-scale systems. Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are already running workloads on their first Helios systems, the company said.

For Q4, AMD expects data center revenue to climb to approximately $12.8 billion, driven by the MI455X and Helios ramp. Looking further out, the company projects server CPU revenue will double in 2027, while data center AI accelerator and rack revenue will more than double, pushing the unit's contribution above 80% of total revenue.

The client and gaming headache

Despite the data center boom, AMD's client and gaming businesses are facing double-digit declines going into 2027.

The picture outside the data center is less rosy. AMD's client segment, which covers PC processors, saw only modest sales declines in Q3 despite high memory prices and other headwinds. But the company expects double-digit declines in client and gaming revenue as it heads into 2027.

That split matters for anyone building or buying a PC. AMD's consumer chips are no longer the growth story; the company's future is increasingly tied to AI accelerators and server CPUs. The shift could mean less aggressive pricing or slower cadence for consumer products, though AMD has not announced specific changes.

The memory price surge is a factor across the industry. As we've reported, Apple's CEO called RAM costs 'unprecedented', and high memory prices are squeezing margins for PC makers. AMD's client business is feeling that pressure.

What it means for you

For PC builders and buyers in the US, UK, and EU, AMD's data center focus doesn't change today's retail prices. But the company's warning of double-digit client declines into 2027 suggests consumer CPU launches may slow, and high memory prices will keep upward pressure on system costs.

AMD's stock and guidance are forward-looking; actual Q4 results will be reported early next year. Intel has not yet commented on the revenue comparison.

AMD's $17 billion Q4 guidance is a symbolic passing of the torch, but it also signals a company increasingly dependent on AI infrastructure. The client PC market, once AMD's underdog battleground, is now a secondary concern. For anyone who cares about consumer hardware, the question is how long AMD keeps pushing Ryzen as hard as Epyc.