AMD expects data center AI revenue to more than double in 2027

AMD expects its Data Center AI business to grow significantly more than double in 2027 as customers increase infrastructure investments. CEO Lisa Su said expanded deployment plans have improved visibility into growth, with server revenue also expected to double year over year in 2027. The company projects its broader Data Center business will account for more than 80% of total revenue in 2027.

AMD expects Data Center AI revenue to surpass server CPU revenue in the fourth quarter as MI450 GPU and Helios rack deployments accelerate. Su acknowledged that demand exceeds available supply and said AMD is working with supply chain partners to increase capacity.

The outlook follows record third-quarter revenue of $13.4 billion, up 45% year-over-year. Data Center revenue rose 97% to $8.5 billion, supported by EPYC server processors and Instinct AI GPUs, while the segment’s operating income increased 168% to $2.9 billion. AMD expects fourth-quarter revenue of approximately $17 billion, plus or minus 3%.

Wedbush analyst Matt Bryson maintained an Outperform rating and a $600 price target, citing strong data center spending and no visible weakness across the semiconductor component supply chain. He pointed to expected revenue growth of 80% next year and plans to double EPYC server CPU sales as evidence of broad-based demand.