AMD pulls ahead of Intel in data center growth

AMD is outpacing Intel in data centers as hyperscalers expand spending on chips for AI training and inference. AMD’s data center revenue rose 97% year over year to $8.5 billion in the previous quarter, surpassing Intel’s data center and AI segment, which grew 78% to $7.3 billion in Q3. AMD supplies both server CPUs and GPUs, while Intel remains more focused on server CPUs after weak customer adoption of its Gaudi accelerators.

AMD expects momentum from its MI455X graphics cards and EPYC server processors. CEO Lisa Su said expanded customer deployment plans and additional supply support expectations for server revenue to double year-over-year in 2027. Intel management expects server CPU industry shipments to increase by more than 30% in 2026 and 2027. AMD’s faster expansion signals market-share gains.

The financial outlook also favors AMD. Its current-quarter revenue guidance implies 66% growth to $17 billion at the midpoint, compared with Intel’s projected 13% increase to $15.5 billion. According to Morningstar, AMD trades at 30 times forward earnings versus Intel’s 35 times forward earnings. Analysts project AMD’s earnings per share to rise 118% in 2027, compared with 20% for Intel, pairing stronger expected growth with a lower valuation multiple.