AMD: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 3, 2026, AMD (NASDAQ:AMD) reported record quarterly revenue of $13.4 billion, driven by expanding adoption of its data center processors. The rapid growth of data center sales to 64% of total revenue highlights a structural portfolio shift toward higher-margin compute platforms. Expanding enterprise demand for artificial intelligence infrastructure positions the company to outpace broader market growth. Three things management said stand out.

Data center server processors -- the EPYC brand of central processing units that run enterprise cloud servers and artificial intelligence applications -- now generate nearly two-thirds of total company sales. As corporate customers adopt EPYC server processors for automated software agents, management expects server revenue to double year over year in 2027.

As high-margin data center shipments scale up, non-GAAP diluted earnings per share -- which measures net income per share of common stock excluding noncash charges -- grew 74% year over year. Higher sales volumes allow the company to manage operating expenses, which are the daily costs of running the business, while expanding operating margins that measure operational efficiency on sales.

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