Thank you, Ruth, and good morning to all those listening in. Today marks a significant milestone in our journey to establish AMD as the industry's high-performance computing leader. Before going into details on our strategic acquisition of Xilinx, I'd like to start with our very strong financial results.
Our business accelerated in the third quarter, resulting in record quarterly revenue with net income and EPS more than doubling year-over-year. Revenue grew 56% year-over-year to $2.8 billion, driven by strong demand for our Ryzen, EPYC and semi-custom processors.
Turning to our Computing and Graphics segment. Third quarter revenue of $1.67 billion grew 31% year-over-year as higher Ryzen processor sales more than offset lower graphic sales. Our client processor business is performing extremely well. Desktop and notebook processor ASPs increased and total unit shipments grew by a strong double-digit percentage, both on a year-over-year and sequential basis. As a result, we set a record for quarterly client processor revenue and believe we gained client CPU share for the 12th straight quarter. In mobile, we set records for both quarterly notebook processor unit shipments and revenue as OEM sell-through doubled year-over-year. We have the strongest notebook processor portfolio in our history.
More than 105 AMD-based notebooks have launched in 2020 as we expand our presence in segments like gaming, commercial and education, where we have traditionally been underrepresented. In commercial, the number of AMD-based business notebooks for major OEMs has doubled year-over-year, and we are building significant momentum based on the superior performance and battery life of our Ryzen PRO processors. Our progress in the third quarter was highlighted by winning multiple large-scale deployments with Fortune 1000 automotive, banking and pharmaceutical companies. Earlier this month, we announced our upcoming Ryzen desktop processors would be the first to feature our newest Zen 3 core. I'm incredibly proud of what our CPU team has achieved with Zen 3. We have significantly enhanced nearly every aspect of the core to deliver a 19% increase in instructions per clock compared to Zen 2. As a result, our Ryzen 5000 desktop processors delivered absolute performance leadership across gaming, productivity and creative workloads, and are positioned to drive the biggest shift in the PC landscape since we launched the original Ryzen processor in 2017.
In Graphics, revenue declined year-over-year and increased sequentially as we prepared to launch our next-generation Radeon GPUs this quarter. Mobile GPU sales grew by a double-digit percentage year-over-year, led by solid demand for our Radeon PRO 5000 M-Series, powering Apple's MacBook Pro. We are very excited about our RDNA 2 graphics architecture launching later this week that delivers significant generational increases in both performance and performance per watt. Our next-generation Radeon RX 6000 graphics cards, powered by RDNA 2, are by far the most powerful gaming GPUs we have ever built and will return AMD to the high end of the graphics market. Data center GPU revenue increased sequentially and year-over-year based on new cloud-based visual computing wins. Our Radeon Instinct accelerators continued gaining momentum in the HPC market. Recently announced wins include Australia's most powerful supercomputer as well as the new LUMI supercomputer in Finland that is expected to deliver over 550 petaflops of peak performance. Turning to our Enterprise, Embedded and Semi-custom segment.
Revenue of $1.13 billion increased 116% year-over-year, driven by strong growth in both semi-custom and server processor sales. In semi-custom, we ramped production and shipments of our next-generation game console SoCs to support the November launches of the PlayStation 5 and Xbox Series X and Series S consoles. We now expect semi-custom shipments and revenue to increase sequentially in the fourth quarter based on strong demand. Turning to server. We set a record for quarterly server processor revenue as sales grew a double-digit percentage sequentially and more than doubled year-over-year, driven by growing cloud and enterprise adoption.
In cloud, the largest hyperscale customers expanded their second-gen EPYC processor deployments across both their internal infrastructures and publicly available instances. In the third quarter, Microsoft Azure expanded their AMD offerings to 18 regions and 9 availability zones and launched new data analytics services powered by second-gen EPYC processors that deliver 30% better performance than competitive offerings. Amazon rolled out multiple new high-performance AMD instances, and Google announced general availability of their Cloud confidential virtual machines, powered exclusively by second-gen EPYC processors. Enterprise data center adoption continued to accelerate as well. We added multiple Fortune 1000 customer wins in the quarter across key verticals, including financial services, automotive and EDA, based on the performance and TCO advantages of EPYC processors.
We are on track to begin volume shipments of our next-generation Milan server processors with Zen 3 to cloud and select HPC customers this quarter. We expect Tier 1 OEM platform availability to follow in the first quarter of 2021. Customer interest in Milan is very high. We are seeing hyperscale, HPC and OEM customers engage deeper and broader for Milan than they did prior to the launch of our second-gen EPYC processors. We believe we are well positioned for continued share gains based on our expanding cloud engagements, strong supercomputing wins and the more than 100 new or refreshed Milan platforms in development. In summary, our strong third quarter results and fourth quarter outlook demonstrate the acceleration in our business.
We are successfully executing our strategy to drive best-in-class growth based on delivering leading-edge CPUs, GPUs and differentiated solutions for the PC, gaming and data center markets. We feel very confident our next-generation Zen 3 CPUs, RDNA 2 GPUs and CDNA accelerators can drive further share gains and growth in 2021 and beyond.
Now let's turn to the transaction. Looking out over the next decade, high-performance computing is increasingly at the center of nearly every major trend shaping the future. Whether in the cloud, at the edge or across the growing number of intelligent end devices, we are seeing increasing demand for high-performance computing, which enables a host of new experiences and services. While our CPUs and GPUs will remain critical engines for those devices in a world where algorithms are always advancing and new standards are continually emerging, we see demand growing for adaptive computing capabilities that can accelerate evolving workloads. That is why today, I'm excited to outline the next leg in our journey with the strategic acquisition of Xilinx.
Together, we will create the industry's high-performance computing leader and the partner of choice for the largest and most important technology companies. Xilinx is the ideal match for AMD. As the industry's #1 provider of FPGAs in adaptive SoCs, they are the market leader. Xilinx is successfully executing multi-generation hardware and software road maps to extend that leadership. Xilinx is a technology leader. Beyond their core innovation in FPGAs and associated software design environments, they have industry-leading capabilities in SoC design, SerDes and high-speed IO, mixed-signal RF, advanced 2.5 and 3D silicon integration and packaging as well as targeted software stacks for key verticals. Xilinx has also built deep strategic partnerships across a diverse set of growing markets. In 5G communications, data center, automotive, industrial, aerospace and defense, Xilinx has established themselves as a strategic technology partner to a broad set of industry leaders. Lastly, Xilinx has a very strong business model, characterized by long product life cycles with a best-in-class gross margin profile and significant free cash flow generation. As we bring AMD and Xilinx together, there are considerable product, technology, market and financial benefits. AMD will offer the strongest portfolio of high-performance and adaptive computing products in the industry, spanning leadership CPUs, GPUs, FPGAs and adaptive SoCs. This will enable us to take a leadership position, accelerating a diverse set of emerging workloads from AI to smart networking and software-defined infrastructure. And while our product portfolios are highly complementary, our approach to technology development is actually very similar. Both companies are laser-focused on developing leadership products based on multi-generation architectures, modular SoC designs, leading-edge manufacturing and advanced packaging technologies. In manufacturing, we will be able to apply learnings from AMD's early adoption and high-volume production ramp of advanced process nodes across Xilinx's products. In packaging, Xilinx has demonstrated leadership and significant IP in the 2.5D and 3D die stacking technologies that are becoming increasingly important as Moore's law slows. Looking beyond hardware, we see opportunities to combine our open-source software offerings into a unified stack optimized to accelerate computing at the platform and the system level. By combining our efforts, we bring together 2 world-class engineering teams with the technology capability and scale to build even stronger products and solutions. From a market perspective, we will cover the most important markets and customers in the world. We will have a combined TAM of $110 billion, building on AMD's $80 billion TAM with an additional $30 billion of very attractive Xilinx TAM. As we look at growth drivers in the 3- to 5-year time frame, we see significant revenue synergy opportunities that can build on AMD's strong organic growth. In the data center, our EPYC processors have a strong foundation with the largest hyperscale cloud providers. We're also gaining significant momentum with enterprise customers and playing a leading role in supercomputing where our products are powering the world's most powerful exascale computers. Xilinx has also invested significantly in the data center with leadership in networking, computing and storage technologies, notably with significant SmartNIC wins with global hyperscalers. Together, we will be a stronger strategic force powering the next-generation data center. To drive longer-term adoption of our processors in the telecom, edge, industrial and networking markets where we have a nascent presence today, we can offer solutions that combine our CPU and GPU compute engines with Xilinx's flexible accelerators, SmartNIC products, software stacks and domain expertise to unlock additional levels of performance on critical workloads. In telecom, for instance, where Xilinx has solutions capabilities and relationships with industry leaders, including Samsung and Ericsson, we will now have an accelerated path to market to better address the largely untapped $5 billion market opportunity for our EPYC processors.
Financially, the acquisition diversifies our revenue streams and is expected to be immediately accretive to margins, EPS and free cash flow generation, all while delivering industry-leading growth. Finally, I would like to talk about culture. For the last several years, AMD has collaborated with Xilinx as a close partner, and I've had the chance to get to know Victor and his leadership team. I can unequivocally say that the Xilinx team is one of the best in the industry, and I'm thrilled to welcome them to the AMD family. Both AMD and Xilinx share a common culture focused on innovation, execution and collaborating deeply with customers. From a leadership standpoint, Victor and I have a shared vision of where we can take high-performance and adaptive computing in the future. And I'm extremely happy that he will be joining AMD as President, responsible for the Xilinx business and strategic growth initiatives after the deal closes.
Now I'd like to turn the call over to Devinder to provide some additional color on our third quarter performance and some specific financial details of the acquisition. Devinder?