AMD data centre revenue jumps 97% as chipmaker forecasts 80% growth in 2027
Advanced Micro Devices said data centre revenue nearly doubled to a record $8.5 billion in its third quarter, as demand for its Instinct AI accelerators and EPYC server processors pushed total company revenue to $13.4 billion, up 45% from a year earlier.
The chipmaker reported non-GAAP earnings per share of $2.09, up 74% year-on-year and ahead of analysts' estimates of $1.94. Data centre now accounts for around 64% of total revenue, and operating margins in the segment widened to 34% from 25% a year earlier.
AMD guided fourth-quarter revenue to approximately $17 billion, plus or minus 3%, and said it expects data centre AI revenue to surpass server CPU revenue in that period as production of its next-generation Helios systems and Venice processors scales up.
Looking further out, management projected total company revenue growth of more than 80% in 2027, with the data centre business expected to contribute more than 80% of total revenue that year. Shares gained around 8% in extended trading after the announcement.
The results sharpen AMD's challenge to Nvidia's dominance in AI chips, though the company said supply constraints persist as demand for its data centre products outpaces available capacity.
