AMD forecasts more than 80% revenue growth in 2027 on AI data-center demand
AMD said it expects revenue to grow more than 80% in 2027, driven by data-center chips for AI, and its shares rose about 8% in after-hours trading Tuesday, Reuters reported.
The forecast: CEO Lisa Su said on the earnings call that AMD now expects server revenue to double in 2027 and data-center chips to make up more than 80% of total revenue, according to the call transcript. Reuters said analysts had expected about 77% growth.
The quarter: Data-center revenue rose 97% to a record $8.55 billion in the third quarter, Reuters reported. AMD guided fourth-quarter revenue to about $17 billion, plus or minus 3%, above the $16.23 billion analysts expected, according to LSEG data cited by Reuters.
The catch: Asked about supply, Su said “demand is higher than supply,” according to the transcript. AMD said it is working with suppliers on wafers, packaging and memory. These are company forecasts, not results.