AMD forecasts 2027 growth to exceed estimates on data center demand
AMD projects revenue growth exceeding 80% by 2027, bolstered by strong performance in its data center chip division.
AMD anticipates revenue growth of more than 80% in 2027, surpassing analyst consensus of 77%. This upward revision is anchored by the company's data center business, which CEO Lisa Su expects will account for 80% of total sales by next year.
The chipmaker has also signaled a positive end to the current fiscal year, forecasting fourth-quarter revenue of approximately $17 billion, ahead of the $16.23 billion estimated by analysts. In the third quarter, data center revenue climbed 97% to $8.55 billion, helping the company achieve a 45% increase in total revenue to $13.38 billion.
Not all segments are showing similar momentum. The client and gaming segment, which covers chips for PCs and consoles, reported an 8% revenue decline to $3.72 billion. Broader industry challenges persist, including a global shortage of high-bandwidth memory (HBM) and ongoing US export controls regarding the shipment of advanced AI hardware to China.