Tech & AI
AMD expects data centers to drive most of its 2027 sales
AMD expects data centers to bring in more than 80% of its 2027 revenue, CEO Lisa Su said, and the shares rose 1.0% on stronger AI chip demand.
Quick Read
- CEO Lisa Su told the earnings call that AMD expects data centers to bring in the large majority of its 2027 revenue.
- Su said demand for data center chips is growing faster as customers build AI systems.
- The stock gained on Wednesday but lagged the S&P 500 and still trades well below its 52-week high.
- Wedbush analyst Matt Bryson kept an Outperform rating on the shares.
What did AMD say about 2027?
Advanced Micro Devices (Nasdaq: AMD) expects its data center unit to generate more than 80% of company revenue in 2027. CEO Lisa Su gave that outlook on the company's earnings call.
Why it matters: She described the unit as the main engine for both sales and profit growth. That would make AMD largely a data center chip company, with its other businesses a small slice of the total.
Su also pointed to faster demand for those chips. Her message was that customers building artificial intelligence systems are spending more on computing hardware, not less.
How did the shares react?
AMD stock rose 1.0% on Wednesday to close at $488.78. The gain added $8 billion to the company's market value, which now stands at $800 billion.
The move trailed the broad market. The S&P 500 gained 1.6% the same day.
Even after the gain, the shares sit 24.7% below their 52-week high of $649.42, the top price the stock reached in the past year.
What do analysts say, and what is still open?
Wedbush analyst Matt Bryson kept his Outperform rating on AMD. That label means he expects the stock to do better than the market. It is one analyst's view.
The open question is whether AI customers keep spending at this pace through 2027. An outlook that leans this heavily on one business could leave AMD more exposed if those budgets tighten. AMD's next quarterly results may show whether data center sales are tracking Su's outlook.
For readers
What it could mean for you: If you own AMD shares directly, the 2027 outlook ties more of your holding to one source: data center chips sold to companies building AI systems. That could make the stock more sensitive to any news about AI spending plans at big cloud and tech customers, in either direction. In a broad fund the effect is far smaller, since AMD makes up 0.88% of the value of the 500 largest U.S. companies.
Questions and answers
How much of AMD's revenue will come from data centers?
AMD expects its data center business to bring in the large majority of total revenue in 2027, CEO Lisa Su said on the company's earnings call. She called the unit the main source of the company's sales and profit growth.
Why did AMD stock go up?
The shares rose after Su gave an upbeat 2027 outlook and pointed to faster demand for data center chips from customers building AI systems. The broad market also rallied the same day, and the S&P 500 gained more than AMD did.
What rating does Wedbush have on AMD?
Wedbush analyst Matt Bryson kept an Outperform rating on AMD after the outlook. A rating is one analyst's opinion, not a forecast the whole market shares.
The numbers
| Advanced Micro Devices (AMD) price | $488.78 |
|---|---|
| Advanced Micro Devices (AMD) change | +1.01% |
| Advanced Micro Devices (AMD) market value | $800 billion |
| Advanced Micro Devices (AMD) 52-week high | $649.42 |
| S&P 500 change | +1.58% |
| 10-year Treasury yield | 4.90% |
Wednesday’s close
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Not investment advice.
