Advanced Micro Devices (AMD) has signaled continued growth in the AI industry with its latest revenue forecast. On November 3, 2026, the semiconductor company projected over 80% revenue growth for 2027.
Record data center sales and stronger quarterly earnings drove the optimistic outlook. The announcement also eased investor concerns about slowing AI infrastructure spending. AMD shares climbed around 8% in extended trading following the announcement.
The forecast strengthens AMD's position against NVIDIA as companies continue expanding their artificial intelligence infrastructure. CEO Lisa Su expects data center chips to generate approximately 80% of AMD's sales next year.
She also expects this business to drive most of the company's revenue and earnings growth. Analysts currently estimate 77% revenue growth for AMD in 2027, according to LSEG data.
AMD's third-quarter performance provided further support for its ambitious projections. Total revenue increased 45% year over year to USD 13.38 billion, exceeding analyst expectations of USD 13.09 billion.
Adjusted earnings reached USD 2.09 per share, beating the estimated USD 1.95. However, the data center business delivered the quarter's most significant contribution.
AMD data center revenue nearly doubled, climbing 97% to a record USD 8.55 billion. The figure exceeded market expectations of USD 8.20 billion and highlighted growing demand for AI processors.
AMD expects fourth-quarter revenue to reach approximately USD 17 billion, plus or minus 3%. This projection also exceeds analysts' average estimate of USD 16.23 billion.
The company is expanding its focus beyond individual processors to larger AI infrastructure systems. Its Helios rack combines the MI455X accelerator with its next-generation Venice server chips. AMD has already started production, with initial systems undergoing testing at Meta. The company plans to increase production during the fourth quarter.
Lisa Su also highlighted growing demand across server processors and AI computing products. She said AMD had anticipated this expansion through several years of infrastructure planning. A shift toward real-world AI applications continues to increase demand for graphics processors and central processing units.
However, AMD still faces challenges across its wider semiconductor business. Its client and gaming revenue declined 8% to USD 3.72 billion during the third quarter.
The company also expects PC shipments to fall by double-digit percentages next year. Su expects AMD to outperform the broader PC market despite this weakness.
A global shortage of high-bandwidth memory also threatens the industry's ability to expand AI chip production. Nevertheless, AMD's latest results suggest that demand for AI infrastructure remains strong. Its growing data center business could provide another competitive challenge to NVIDIA throughout 2027.
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