AMD Forecasts 80% Revenue Growth in 2027

AMD CEO Lisa Su told investors on the company’s latest earnings call that AMD expects total revenue to grow more than 80% in 2027, above Wall Street’s 77% forecast. Data center chips are projected to account for 80% of total sales.

AMD’s data center revenue rose 97% year over year to $8.55 billion in the third quarter, exceeding analysts’ $8.20 billion estimate. The segment made up 64% of total revenue, compared with 47% a year earlier. CFO Jean Hu expects data center AI revenue to surpass server CPU sales for the first time in the fourth quarter. Su projected server CPU revenue would double year over year in 2027, while data center AI sales would more than double.

AMD began shipping MI455 accelerators and Helios rack systems that generated revenue in the third quarter. Hu expects shipments to ramp up substantially in the fourth quarter and expand further throughout 2027. Meta, Microsoft, Anthropic, OpenAI and Oracle have begun deploying Helios systems in their data centers. AMD says Helios competes with NVIDIA’s Grace Blackwell and Vera Rubin platforms.

AMD forecast fourth-quarter revenue of approximately $17 billion, plus or minus 3%, above the $16.23 billion consensus estimate cited by Reuters. It expects adjusted gross margin of 55%, down from 56% in the previous quarter and close to analysts’ 55.27% forecast. AMD also expects industry-wide PC shipments to decline by a double-digit percentage next year, though Su expects AMD to outperform the market. Third-quarter client and gaming revenue fell 8% year over year to $3.72 billion.

Su said AMD has long-term agreements with some suppliers and customers as HBM and other component costs rise. She said the company is coordinating with customers on deployment needs and schedules and working with supply-chain partners to secure wafers, substrates, advanced packaging, memory and other components for its expected growth.

AMD CEO Lisa Su told investors on the company’s latest earnings call that AMD expects total revenue to grow more than 80% in 2027, above Wall Street’s 77% forecast. Data center chips are projected to account for 80% of total sales.

AMD’s data center revenue rose 97% year over year to $8.55 billion in the third quarter, exceeding analysts’ $8.20 billion estimate. The segment made up 64% of total revenue, compared with 47% a year earlier. CFO Jean Hu expects data center AI revenue to surpass server CPU sales for the first time in the fourth quarter. Su projected server CPU revenue would double year over year in 2027, while data center AI sales would more than double.

AMD began shipping MI455 accelerators and Helios rack systems that generated revenue in the third quarter. Hu expects shipments to ramp up substantially in the fourth quarter and expand further throughout 2027. Meta, Microsoft, Anthropic, OpenAI and Oracle have begun deploying Helios systems in their data centers. AMD says Helios competes with NVIDIA’s Grace Blackwell and Vera Rubin platforms.

AMD forecast fourth-quarter revenue of approximately $17 billion, plus or minus 3%, above the $16.23 billion consensus estimate cited by Reuters. It expects adjusted gross margin of 55%, down from 56% in the previous quarter and close to analysts’ 55.27% forecast. AMD also expects industry-wide PC shipments to decline by a double-digit percentage next year, though Su expects AMD to outperform the market. Third-quarter client and gaming revenue fell 8% year over year to $3.72 billion.

Su said AMD has long-term agreements with some suppliers and customers as HBM and other component costs rise. She said the company is coordinating with customers on deployment needs and schedules and working with supply-chain partners to secure wafers, substrates, advanced packaging, memory and other components for its expected growth.