AMD forecasts quarterly revenue above estimates as data-center revenue hits record

On November 3, AMD projected ahead of expectations for 2027 growth as its data-center sales expanded rapidly, surpassing rivals and fueling a 8% increase in its shares during extended trading. The corporate forecast, paired with impressive third-quarter results, provided a compelling contrast to growing apprehensions that the AI boom may be waning, alleviating investors' concerns following Intel's disappointing outlook. Intel's shares climbed 2%, while Nvidia's stock surged over 1%, and Broadcom also rose by 1.2%.

In a conference call with analysts, AMD CEO Lisa Su announced the company anticipates overall revenue growth surpassing 80% in 2027, exceeding the 77% growth forecast by analysts according to LSEG data. Su highlighted that 80% of sales next year would originate from data-center chips, driving the majority of revenue and earnings growth. She explained that demand is strong across the data-center business, CPU business, and the data-center AI business, as the company has been preparing for this growth for several years.

Data-center revenue surged 97% to a record $8.55 billion in the third quarter, outpacing expectations of $8.20 billion. The company predicts fourth-quarter revenue of approximately $17 billion, within a range of plus or minus 3% above the analysts' average estimate of $16.23 billion. AMD's chips are poised to capitalize on the massive AI data-center buildout, according to portfolio manager Hendi Susanto at Gabelli Funds.

The stock's resilience amid wider AI-related market pressure implies investors view AMD's results as evidence of its technological leadership and strong potential for market share expansion.