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AMD Forecasts Over 80% Revenue Growth in 2027, Server CPU Sales to Double

What happened

During its third-quarter earnings conference call on Nov. 3 local time, AMD forecast that company-wide revenue will grow more than 80% in 2027 from this year, with the server CPU business roughly doubling and AI GPU revenue growing even faster. CEO Lisa Su said demand remains strong across data center CPUs and AI, with demand currently exceeding supply. Most server CPU revenue growth is expected to come from higher shipment volumes, with average selling prices also rising somewhat as the sixth-generation Venice server CPU increases the number of cores per chip. CFO Jean Hu said data center revenue is expected to grow 50% sequentially in the fourth quarter, when data center AI GPU revenue will surpass server CPU revenue. Major AI model developers and hyperscale cloud providers including OpenAI, Meta, Microsoft, Oracle and Anthropic have begun initial operations of AMD's Helios data center server racks, with shipments planned to increase significantly starting in the fourth quarter; the CPU-focused Helion rack uses a CPU-only configuration and can accommodate up to 144 Venice processors per rack. AMD is co-designing its next-generation Instinct MI500 and MI600 GPUs with major AI model developers. The company plans to keep SG&A and R&D spending growth below half its revenue growth rate next year and is working with supply chain partners to secure wafers, substrates, packaging and memory. AMD reported record third-quarter GAAP revenue of $13.377 billion and operating profit of $2.832 billion, up 45% and 123%, respectively, from a year earlier; data center revenue nearly doubled to $8.546 billion, accounting for 64% of total revenue. The company projected fourth-quarter revenue of $17 billion, plus or minus 3%, a 66% year-on-year increase.