Advanced Micro Devices has raised its sights sharply for next year, forecasting revenue growth of more than 80% in 2027 after reporting a record third quarter driven by surging demand for its data centre chips.
The chipmaker reported revenue of $13.38 billion for the three months to the end of September, up 45% on a year earlier and ahead of analyst expectations of about $13.09 billion. Adjusted earnings came in at $2.09 a share, beating the $1.95 consensus.
The engine of the result was the data centre business, where revenue rose 97% year on year to a record $8.55 billion. The segment now accounts for 64% of AMD’s total sales, up from 47% a year ago, as customers buy its EPYC server processors and Instinct accelerators for artificial intelligence workloads.
For the current quarter, AMD guided to revenue of about $17 billion, plus or minus 3%, implying growth of about 66% from a year earlier. Management said data centre revenue should rise about 50% sequentially in the quarter, when its data centre AI business is expected to overtake its server processor business in revenue for the first time.
The longer-term outlook drew the most attention. Chief executive Lisa Su told analysts on the company’s earnings call on 3 November that AMD now expects total revenue to grow by more than 80% in 2027, more than twice the long-term growth model it set out last November. Server revenue is expected to roughly double, while data centre AI revenue is expected to grow significantly more than twofold, taking data centre sales to more than 80% of total revenue.
Those forecasts are management expectations, not results already achieved, and they will depend on supply, customer demand and the pace of AI infrastructure spending holding up. AMD also warned of softer areas: it expects personal computer shipments to fall by a double-digit percentage in 2027, and its fourth-quarter gross margin forecast of about 55% came in slightly below analyst estimates.
The results offered a counterpoint to recent nerves about the AI trade. Investors had questioned whether enormous spending on AI infrastructure would generate returns quickly enough, and rival Intel issued a weak outlook last week. Reuters reported on Wednesday that AMD’s forecast helped lift beaten-down technology shares in Asia, with South Korean stocks rising more than 2% in early trading.
Note: the featured image is a file photo of Lisa Su at South by Southwest in Austin, Texas, in March 2024, not a photograph from AMD’s earnings call.
Sources: Reuters, “US stock futures dip as investors await midterm election results”, 4 November 2026, https://www.reuters.com/world/china/global-markets-wrapup-1-2026-11-04/ ; AMD third-quarter 2026 earnings call, 3 November 2026, as reported at https://aistockwire.com/blog/amd-amd-q3-2026-earnings-17-billion-forecast-gross-margin-warrants-november-2026
