AMD and Intel Report Surge in AI-Driven Revenue
AMD and Intel report significant revenue growth driven by artificial intelligence, with AMD nearing Intel's total revenue levels through faster data center expansion.
The artificial intelligence revolution is driving substantial growth for both Advanced Micro Devices (AMD) and Intel, with AMD's shares rising 158% and Intel's 69% this year. In the third quarter, Intel reported revenue of $16.5 billion, a 21% year-over-year increase, while its data center and AI segment grew by 78%.
AMD reported third-quarter revenue of $13.4 billion, representing a 45% increase, with its data center segment growing 97%. AMD's fourth-quarter revenue guidance of $17 billion suggests the company may soon surpass Intel in total revenue, supported by faster growth and stronger gross margins.
Both companies are positioning themselves for the rise of agentic AI. AMD suggests this shift could move the industry's CPU-to-GPU ratio toward 1-to-1. While Intel utilizes an internal manufacturing strategy, AMD has gained market share by outsourcing chip production to avoid internal delays. AMD estimates the CPU addressable market will reach $220 billion by 2030.
