ASX Data Centre and Tech Stocks Rise Alongside AMD's Record Quarterly Results

Highlights

• AMD reported record third-quarter 2026 revenue of US$13.4 billion, up 45% year on year.

• Data Center segment revenue reached a record US$8.5 billion, up 97%.

• NEXTDC and Megaport shares rose more than 4% in the same session.

Introduction

NEXTDC Limited (ASX: NXT) shares traded at AU$6.50, up 3.67%, and Megaport Limited (ASX: MP1) changed hands at AU$17.63, a gain of 4.2%, in the same session that Advanced Micro Devices (AMD) reported record third-quarter 2026 results. The same-session advances in the two Australian digital infrastructure names came alongside a filing from the US chipmaker that showed its Data Center segment almost doubling in size over twelve months.

AMD Posts Record Quarterly Revenue

AMD lodged its third-quarter 2026 results with the US Securities and Exchange Commission as Exhibit 99.1 to a Form 8-K. Revenue for the quarter reached a record US$13.4 billion, or US$13,377 million, a rise of 45% on the corresponding period of 2025 and 16% above the second quarter of 2026.

Profitability improved at a faster pace than sales. On a non-GAAP basis, gross margin rose two percentage points to 56%, operating income climbed 75% to US$3.9 billion and net income increased 77% to US$3.5 billion. Non-GAAP diluted earnings per share came to US$2.09, a 74% lift from US$1.20 a year earlier.

Under GAAP measures, the company recorded operating income of US$2.8 billion and net income of US$2.4 billion. GAAP diluted earnings per share were US$1.46, up 95% from the prior-year quarter.

Data Center Segment Nearly Doubles

The Data Center segment remained the central contributor to the result. Segment revenue reached a record US$8.5 billion, an increase of 97% year on year, which the company attributed to demand for its EPYC server processors and the launch of its Instinct MI450 Series graphics processors.

Elsewhere in the portfolio, Embedded segment revenue grew 29% to US$1.1 billion, while Client and Gaming segment revenue eased 8% to US$3.7 billion. Within that segment, Client revenue rose 7% to US$2.9 billion and Gaming revenue declined 40% to US$773 million.

Among its operational highlights, AMD reported that several large cloud and artificial intelligence operators had begun running workloads on its first Helios rack-scale systems. The company also announced agreements to acquire World Labs and Taalas, broadening its capabilities in model research and specialised inference silicon.

Fourth-Quarter Outlook Points to Further Growth

The filing sets out a fourth-quarter 2026 revenue outlook of approximately US$17 billion, plus or minus 3%. At the midpoint, that range represents year-on-year growth of roughly 66% and a sequential increase of about 27%. AMD also indicated a non-GAAP gross margin of approximately 55% for the period.

The company noted that these outlook statements are forward-looking and that actual outcomes could differ materially depending on market conditions and other risk factors.

ASX Data Centre and Network Names Advance

On the ASX, NEXTDC rose AU$0.23 to AU$6.50, with about 2.82 million shares traded.

Megaport added AU$0.71 to reach AU$17.63, on volume of around 237,300 shares.

What Investors Should Watch

• AMD's fourth-quarter revenue against its outlook of about US$17 billion, plus or minus 3%.

• Progress on AMD's proposed acquisitions of World Labs and Taalas.

• Further ASX announcements from NEXTDC and Megaport.

Conclusion

AMD reported record quarterly revenue of US$13.4 billion, with Data Center sales up 97% to US$8.5 billion and non-GAAP EPS up 74% to US$2.09. Its fourth-quarter outlook is about US$17 billion. On the ASX, NEXTDC traded at AU$6.50, up 3.67%, and Megaport at AU$17.63, up 4.2%.

Note- All data presented is based on information available at the time of writing.

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