Surging data-center demand propelled third-quarter revenue up 45 percent to $13.38 billion, driven by record segment sales of $8.55 billion. Looking ahead, CEO Lisa Su expects enterprise infrastructure to generate 80 percent of AMD's sales next year, bolstered by testing of its new Helios rack-scale systems at Meta. However, the company must still navigate persistent constraints, including an industry-wide shortage of high-bandwidth memory and an 8 percent decline in client and gaming revenues.
Key points
Executive leadership projects total corporate revenue will grow by more than 80 percent i…: Executive leadership projects total corporate revenue will grow by more than 80 percent in 2027.
High-bandwidth memory shortages continue to pose an operational headwind for AMD despite…: High-bandwidth memory shortages continue to pose an operational headwind for AMD despite soaring data-center demand.
A weakening consumer market caused client and gaming sales to slide 8 percent to $3.72 bi…: A weakening consumer market caused client and gaming sales to slide 8 percent to $3.72 billion.
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Nov 3 : AMD forecast faster-than-expected 2027 growth as its data-center sales surge and its multibillion-dollar challenge to Nvidia gathers pace, sending its shares up 8 per cent in extended trading.
The forecast and market-beating third-quarter results offered a strong counterpoint on Tuesday to mounting fears that the AI boom is losing steam and soothed investor concerns after rival Intel issued a weak outlook last week.
Intel's shares rose 2 per cent, Nvidia stock climbed over 1 per cent and Broadcom also advanced 1.2 per cent.
On a conference call with analysts, AMD CEO Lisa Su said the company expects overall revenue to rise more than 80 per cent in 2027. Su's forecast is higher than the 77 per cent growth analysts estimate, according to LSEG data.
Su told analysts that 80 per cent of sales next year will come from data-center chips that will "drive the majority of our revenue and earnings growth."
"We see demand across the data-center business, across our CPU business, as well as our data-center AI business," Su said. "And when you look at the…
Significant financial adjustments have impacted the semiconductor firm following major supply agreements with prominent artificial intelligence leaders. The substantial cost highlights the immediate balance-sheet effects of securing large-scale technological partnerships with major industry players. These strategic enterprise commitments reflect the high price of competing in the current hardware sector.
Tech giants are securing access to crucial artificial intelligence processors through unprecedented equity arrangements, trading massive hardware commitments for future ownership stakes. Advanced Micro Devices incurred the substantial accounting hit to lock down long-term purchasing commitments, including billions in business from Meta Platforms. Investors ultimately brushed off the immediate balance-sheet impact and dilution risks, focusing instead on accelerated data-center projections that lifted the entire sem…
Stronger long-term growth forecasts prompted the consumer goods company to accelerate its strategic targets and upgrade operating profitability estimates. Management now expects faster top-line momentum across both domestic and overseas markets, backed by targeted initiatives to expand rural penetration and direct retail reach. This positive trajectory has allowed the enterprise to advance its long-range revenue milestones a full year ahead of schedule.