World news and discussion on TalkFuse.
AMD predicts over 80 per cent revenue growth in 2027 as data-centre demand surges
Developed over time first seen 1 day ago
AMD expects its revenue to grow by more than 80 per cent in 2027, outpacing analysts’ forecast of 77 per cent as demand for data-centre chips rises. The outlook and better-than-expected quarterly results lifted its shares by 8 per cent in extended trading and strengthened its challenge to Nvidia amid concerns about the pace of AI investment.
Data-centre revenue nearly doubled, rising 97 per cent to a record US$8.55 billion in the third quarter, while total revenue increased 45 per cent to US$13.38 billion. AMD forecasts fourth-quarter revenue of about US$17 billion, plus or minus 3 per cent, and expects data-centre chips to account for 80 per cent of sales next year; client and gaming revenue fell 8 per cent to US$3.72 billion.
- Sources
- 2
- Outlets
- 2
- Left · Centre · Right
- 0 · 2 · 0
In short
- AMD forecasts more than 80 per cent revenue growth in 2027.
- Data-centre sales hit a quarterly record of US$8.55 billion.
- Client and gaming revenue fell 8 per cent.
How this story developed
- 21 hours ago AMD chief executive Lisa Su said data-centre chips would make up 80 per cent of sales next year, as the company’s 2027 growth forecast topped analysts’ estimate of 77 per cent and bolstered its challenge to Nvidia.
- 1 day ago AMD’s fourth-quarter revenue forecast of about US$17 billion, above analysts’ expectations, added to evidence of strong demand for its AI chips, with data-centre revenue up 97 per cent to US$8.55 billion.
- 1 day ago AMD said it expected revenue to grow by more than 80 per cent in 2027, while record data-centre sales and stronger-than-expected quarterly results sent its shares up 8 per cent in extended trading.
Explained simply
AMD makes processors used in computers and in data centres, the large facilities that store and process digital information. Its chief executive is Lisa Su, and the company is seeking to win more business in artificial intelligence computing, where Nvidia is a major supplier.
Demand for data-centre chips has become an important source of growth for AMD, while its client and gaming businesses serve different markets, including personal computers and game consoles. The shift matters because the companies supplying chips are competing for a growing share of spending on AI infrastructure.
Coverage · 2 sources
Bias meters
From 2 rated sources.
AI Business Markets Technology World
Read the full article at the source →
Originally published by CNA as “AMD forecasts quarterly revenue above estimates as data-center revenue hits record”.