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

On November 3, AMD forecasted revenue growth exceeding market expectations for the fiscal year 2027. The data-center segment of the company saw a surge in sales and is expected to drive the majority of revenue and earnings growth. The forecast and third-quarter results outperformed expectations, providing a positive counterpoint to concerns about the potential decline of the AI boom.

This news contrasted with Intel's weaker outlook, which sent its shares up 8 percent in extended trading. AMD's CEO, Lisa Su, announced that 80 percent of the company's sales next year would come from data-center chips, driving revenue and earnings growth. The company's data-center revenue jumped 97 percent to a record $8.55 billion in the third quarter, surpassing estimates of $8.20 billion.

Analysts see AMD's results as confirming its technology leadership and strong position to gain market share.