AMD shares rise as AI-driven data-center strength fuels growth outlook
AMD•AMD shares rose 3% in early trading after it forecast revenue growth of more than 80% in 2027. Third-quarter data-center revenue jumped 97% to $8.55 billion, topping analysts’ $8.20 billion estimate.
1. Growth outlook strengthens
Advanced Micro Devices rose 3% in early trading after forecasting faster growth through 2027. CEO Lisa Su said the company expects overall revenue to rise more than 80% in 2027, above analysts’ 77% estimate, and said demand spans data-center CPUs and AI.
2. Data-center momentum
AMD’s third-quarter data-center revenue jumped 97% to $8.55 billion, exceeding analysts’ expectations of $8.20 billion. Analysts at TD Cowen said AMD’s product roadmap and expanding software ecosystem could help it capture a meaningful share of the AI market and make further gains in server CPUs.
3. Analysts weigh opportunity
Morgan Stanley analysts cautioned that current growth in server CPUs may not continue indefinitely amid an industry-wide shortage, while saying AMD is executing better than competitors and could keep gaining market share. AMD has gained about 126% this year; the article said it trades at about 31 times forward earnings, compared with 14 times for Nvidia and 16.5 times for Broadcom.
