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AMD Data Center Sales to Double by 2027
5 Aug
Summary
- AMD anticipates data center sales doubling by 2027.
- Server revenue is projected to exceed 80% growth.
- AMD has successfully gained market share from Intel.
Advanced Micro Devices (AMD) is poised for substantial growth, with CEO Lisa Su projecting a doubling of data center sales by 2027. The company also anticipates its server revenue to surge by more than 80% in the same period. This optimistic forecast is attributed to an unexpectedly high demand for both accelerators and CPUs.
During the second quarter of 2026, AMD reported revenue of $11.54 billion, a 50% year-on-year increase, and earnings per share of $1.66. These figures marginally surpassed market expectations. However, the company's guidance for the subsequent quarter, predicting $13 billion in revenue, fell short of some analyst projections, leading to a stock price decrease.
The data center segment was the primary driver of recent growth, with sales climbing 107% to $6.7 billion, propelled by strong CPU and GPU performance. AMD's chief financial officer expects this momentum to continue, enhancing overall revenue and earnings. The company also confirmed it has successfully captured market share from competitor Intel in the CPU sector.
AMD's capital expenditures have significantly increased, reaching $808 million in the recent quarter compared to $282 million in the prior year. Despite expectations of a market slowdown in the latter half of 2026, the semiconductor market has demonstrated resilience. Shares, which had risen 132% year-to-date, saw a 9% drop in extended trading following the earnings report.
