Advanced Micro Devices is on pace to pass Intel in quarterly sales for the first time, based on forecasts both chipmakers gave in the past two weeks. The shift is driven by AMD’s data center chips, which already outsold Intel’s data center products last quarter.
AMD said on Tuesday it expects fourth-quarter revenue of about $17 billion, plus or minus 3%. Intel guided last week for fourth-quarter sales of $15 billion to $16 billion.
If both companies hit those targets, AMD would report higher quarterly sales than Intel for the first time in their history. AMD’s forecast also topped the $16.3 billion that analysts had expected.
AMD’s Data Center Unit Now Outsells Intel’s
AMD’s data center sales nearly doubled from a year earlier to $8.5 billion in the third quarter. Intel reported $7.3 billion in data center sales for the same period.
The segment made up 64% of AMD’s total revenue last quarter. A year ago, data center chips accounted for 47% of sales.
AMD’s overall third-quarter revenue rose 45% to a record $13.4 billion, beating analyst estimates. Intel’s third-quarter sales rose 21% to $16.5 billion, in line with expectations.
“The third quarter was the largest and most profitable in our history as we began ramping our next-generation data center products,” AMD CEO Lisa Su said on the analyst call. The company pointed to partnerships with large AI companies and strong sales of new products such as Helios and Venice.
AMD also said it expects sales to grow 80% in 2027. The company tied that outlook to demand for data center chips.
Intel’s Report Weighed on Both Stocks
Intel’s results last week included a weaker-than-expected forecast and a warning about ongoing weakness in the PC market. Its shares fell more than 20% in a single day after the report.
Investors raised concerns that Intel relies too heavily on consumer products like PCs. Some also questioned whether it has a strong enough position in AI.
AMD shares fell over 17% in the final two days of last week after Intel’s earnings. The stock dropped about 25% from its high during the selloff.
Nicholas Mugalli, CEO of World Trade Securities, said in a post on X that many investors expected AMD to be dragged down by Intel’s report. “Instead AMD guided way above the Street. That’s the difference between a company stuck in PCs and a company riding AI,” he said.
Daniel Newman, CEO of The Futurum Group, said AMD has a history of under-promising and over-delivering on its guidance. “We see more of the same here,” he wrote on X.
On Stocktwits, retail sentiment for AMD moved from “extremely bullish” to “bullish.” Sentiment for Intel stayed at “extremely bullish” for a second day.
One trader called it one of the best earnings reports of the quarter. Another warned that much of AMD’s market value depends on AI revenue and data center growth.
AMD shares rose 3% in overnight trading after the report. As of its last close, the stock was up 126% year to date.
