AMD CEO Lisa Su said on the third-quarter earnings call that she expects 2027 revenue to grow more than 80%, more than twice AMD's long-term financial model, though that compares a one-year target with a multi-year model. Data center is expected to exceed 80% of 2027 revenue, up from 64% in the third quarter, when revenue reached $13.377 billion, and fourth-quarter revenue is guided to about $17.0 billion, plus or minus 3%. GAAP EPS was $1.46 and non-GAAP EPS $2.09, but a customer warrant charge will dilute shareholders once vesting and exercise conditions are met. Free cash flow fell to $554M while inventory rose to $11.463B, and Su expects PC unit shipments to decline by a double-digit percentage in 2027. Shares closed at $483.90 on November 3, up 3.65% but down 23.66% in the month before the report, and the next tests are NVIDIA's November 17 report and AMD's fourth-quarter results.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMDsemiconductorsdata centersartificial intelligenceearnings
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/03/2026 | 206.57 |
| Change that session | +2.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- What sets AMD data centers apart as Intel stock keeps sliding?
AMD beat Wall Street estimates for its third-quarter earnings, as AI data center revenue nearly doubled to $8.55 billion. Guests said Intel posted strong data center numbers but weak PC sales, and its stock plunged, while AMD's forward guidance, contracts, backlog and margins were seen as stronger. Revenue could grow 80% in 2027, up from an earlier estimate of 35%. They noted that higher memory prices and component costs were hurting PC demand, with 2027 PC shipments projected to fall by a double-digit percentage and gaming sales down 8% year-on-year. Commentators compared AMD's focus on data centers to Nvidia's shift from gaming chips to AI.
- AMD Stock Surges After Hours As Q3 Sales Surge 45% On AI Boom, And Expectations For 80% Revenue Jump In 2027
AMD reported record third-quarter revenue of $13.4 billion, up 45% year-over-year, driven by strong demand for AI processors and data center chips. Data Center revenue reached $8.5 billion, up 97%, on demand for EPYC server CPUs and Instinct MI450 accelerators, and Microsoft, Meta, OpenAI, Anthropic and Oracle have deployed AMD's server solutions. Adjusted earnings per share rose 74% to $2.09, beating analysts' expectations of $13.1 billion in revenue and $1.97 per share. By contrast, Client and Gaming revenue fell 8% to $3.7 billion, with gaming down 40% to $773 million on lower semi-custom console orders, while industry memory chip shortages and rising component prices weighed on consumer PC demand. For Q4 2026, AMD expects revenue of about $17 billion, plus or minus 3%, a 66% year-over-year increase at the midpoint and above the average analyst projection of $16.3 billion; the company expects 2027 revenue to grow more than 80%.
- Was There Any Sign AMD Stock Would Run?
A $10,000 investment in AMD made on October 27, 2025, was worth about $22,280 at the market close on October 28, 2026, while the S&P 500 returned 14.0% over the same period. Data center revenue became the main driver, accounting for 58% of sales in the quarter ended June 2026, up from 42% a year earlier, and reaching a record $6.7 billion. The article argues that signs were visible before the run, including the October 6, 2025 OpenAI agreement to deploy 6 gigawatts of AMD GPUs. AMD kept adding customers, including Anthropic with up to 2 gigawatts of MI450 chips and Meta, which will use AMD Helios rack systems. Management expects data center revenue to more than double in 2027, though this is a forecast rather than a result.
- What Changed In AMD's Story?
AMD now highlights Helios, a full rack-scale AI platform combining EPYC Venice CPUs and MI450 series GPUs, rather than the MI300X it emphasized in its October 29, 2024 call. On its August 4, 2026 call, management said Anthropic will deploy up to 2 gigawatts of MI450 series GPUs in Helios, with the first gigawatt starting in the first half of 2027. The Data Center segment brought in $16.6 billion in fiscal 2025, or 48.0% of revenue, and in fiscal Q2 2026 data center revenue grew 107% to $6.7 billion. Helios is not yet included in reported figures, as initial shipments were expected to begin later in the third quarter, so investors are partly paying for a product with no reported sales. The article says the shift looks more reassuring than concerning and points to data center revenue for fiscal Q3 2026, expected in November 2026, as the key figure to watch.
- Prediction: 2 Stocks That Will Be Worth More Than AMD 5 Years From Now
The article compares AMD with two AI companies, Cerebras Systems (CBRS) and Marvell Technology (MRVL). Cerebras makes an oversized chip designed to speed up AI computing; in Q2 2026, its core revenue more than doubled year over year, cloud revenue nearly quadrupled, and remaining performance obligations (RPO) reached $25.4 billion. Management expects core revenue to more than triple in 2027, after guiding for $880 million to $890 million this year. Marvell supplies custom chips and high-speed connectivity for AI data centers and targets $70 billion to $90 billion in revenue by fiscal 2031, up from $8.2 billion in fiscal 2026. Market caps are about $829 billion for AMD, $195 billion for Marvell and $26 billion for Cerebras; the article says Marvell has an established business, while Cerebras is higher-risk, with customer concentration among its risks.
- Here's What a $5,000 Investment in AMD Could Be Worth by 2032
AMD shares have risen 147% in 2026 as of writing, well ahead of the 57% gain in the PHLX Semiconductor Sector index, driven by demand for its server CPUs and GPUs in AI data centers and by gains in the PC market. The data center segment made up 58% of Q2 revenue, rising 107% year over year to $6.7 billion. The company cites an AI data center accelerator market growing at a 45% CAGR through 2030, reaching $1.4 trillion in revenue, and says its server CPUs are used by hyperscalers including Amazon, Microsoft, Oracle, and Google. Other catalysts include its Helios rack-scale systems, semi-custom processors for next-generation Sony and Microsoft consoles, and PC client CPU revenue up 23% to $3.1 billion, with market share estimated at 30.3% versus 23.9% a year earlier, while global PC shipments fell 4%.
Related markets
Latest news
- SpaceX and Tesla face policy and governance risks after Democratic gains
Investing.com reports that the Democratic takeover of Congress is now a direct policy risk for SpaceX (SPCX) and Tesla (TSLA), which fell in the session by about 5% and 5.6% respectively. SpaceX faces pressure from its reliance on government contracts, tighter scrutiny of Starlink's military role, and proposed Texas data-center restrictions that could slow and raise the cost of its AI infrastructure. Morgan Stanley's improved outlook, with its 2027 revenue estimate raised to $175B and its free-cash-flow-positive forecast moved up to 2031, could be offset by a larger political discount. The article calls Tesla more vulnerable, since its valuation depends on autonomy and AI that could face tighter scrutiny, and a SpaceX combination would raise governance concerns, with Barclays estimating Musk could hold about 56% of voting power on roughly 37% of shares.
- Should You Forget VOO and Buy This Magnificent ETF Instead?
The article compares the Roundhill Magnificent Seven ETF (MAGS) with the Vanguard S&P 500 ETF (VOO) as the Nasdaq-100 has fallen about 9% from its early-October high on concerns over AI infrastructure costs. MAGS has averaged 36.9% annual returns since its April 2023 inception through September 30, but only about 12.2% over the past year, mostly due to Apple. The article suggests investors doubtful about AI payoffs may consider VOO instead, noting its portfolio is about 39.7% tech and spread across financials, pharmaceuticals and large-value stocks. It cites Vanguard research suggesting AI's biggest winners could be companies that use AI rather than those building it. VOO has averaged about 12% annually over the past five years, including the 2022 bear market.
- Counterparty Concentration and Depreciation Define CoreWeave Now
CoreWeave (NASDAQ:CRWV) carries a Hold rating at $53.74 after a 40.04% drop over the past month, as investors question who is paying its bills and how quickly its GPUs lose value. The company rents NVIDIA GPU capacity to AI labs, hyperscalers such as Meta, and enterprises, with OpenAI, Meta and Microsoft as its largest counterparties. Second-quarter revenue reached $2.58 billion, up 112.3% year over year, and the revenue backlog stands at $104.2 billion. Depreciation and amortization hit $1.393 billion, about 54% of revenue, while interest expense rose to $640 million from $267 million. Total liabilities of $72.05 billion sit against $5.02 billion of equity, and the average analyst target of $134.58 comes from 42 analysts.
- Oracle Continues to Crash Lower and Lower But Two Bullish Desks Agree That Its Price WIll More Than Triple
Oracle (NYSE:ORCL) trades at $126.21, well below the $234.10 average analyst target, and two desks, Guggenheim and Mizuho, carry $400 targets. The stock is down 34.39% year to date, while its remaining performance obligations (RPO) stand at $664B, up $209B year over year. Oracle launched a new $20 billion offering of common stock and senior notes, following a $20B at-the-market equity program. In the first quarter, capex reached $28.5B, free cash flow was negative $5.4B, and interest expense rose 55% to $1.4B. The article says the bullish case depends on the backlog converting to revenue on schedule, while total liabilities of $236B remain a risk to watch.
- ELEKTROS Highlights Northern New York Lithium Potential Amid Growing Focus on Domestic Battery Supply
ELEKTROS Inc. (OTC PINK:ELEK) is conducting an initial, exploratory assessment of a possible hard-rock lithium property in northern New York close to the Canadian border, but has not acquired the property and no independently verified mineral resource or reserve exists. The company is also exploring development relationships tied to its multi-port EV charging patent, U.S. Patent No. 12,522,100 B1, though no prototype, patent license, customer deployment or revenue has been announced. The article cites remarks by Elon Musk and President Donald J. Trump on lithium-ion batteries and critical minerals in general, which do not refer to the company. A Benchmark Mineral Intelligence outlook cited by Benzinga suggests global lithium demand could more than triple by 2050, but this is an industry projection, not a company forecast.
- Forget the 12-Month Squeeze: Microsoft Is Primed for an Explosive AI Payoff
Microsoft (NASDAQ:MSFT) shares rose just 1.6% over the past year, while net income grew 32.01% in the latest quarter, a gap the author argues most investors are misreading. The author sees Microsoft earning revenue at every layer of corporate AI use, from Azure capacity to Foundry and Copilot. In the quarter ended Sept 30, 2026, revenue reached $92.28B, up 18.8%, Microsoft Cloud brought in $63.9B, up 30%, and Azure grew 48%. Commercial remaining performance obligations reached $677B, up 73%, and non-GAAP EPS came in at $4.89 against a $4.72 estimate. The article also flags spending risk, with cash capex of $39.37B last quarter, up 102.99%, and fiscal 2026 free cash flow down 6.46% to $66.99B.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.