Shares in US chipmaker AMD rose after the company gave investors a stronger outlook for its future growth. The company expects its revenue to increase by more than 80% in 2027, beating the growth estimate made by many market analysts. The forecast reflects rising demand for chips used in data centres and artificial intelligence systems, which have become major areas of investment for technology companies.
AMD’s latest figures also showed strong growth in its data centre business. Revenue from the division rose 97% to $8.55 billion in the third quarter. That figure was higher than the roughly $8.20 billion expected by analysts. The result suggests that demand for computing power is spreading across a wider range of products, including central processing units and other chips used to run large digital systems.
Chief Executive Lisa Su said customers were showing strong interest in both data centre CPUs and AI products. The company hopes to use this demand to gain a larger share of a market where Nvidia has held a leading position. AMD is also working to improve its software tools and product range, which could help customers use its chips in more types of AI systems.
The stronger outlook has helped improve investor confidence in AMD. The company’s shares have gained sharply during 2026, supported by the wider rise in spending on AI infrastructure. Analysts have also pointed to its product plans and growing role in server processors as possible sources of future growth. However, competition remains intense, and the company must continue to deliver products that meet customer needs.
There are still risks. Morgan Stanley has warned that the current pace of growth in server CPUs may be difficult to maintain because of supply limits across the industry. AMD will also face pressure from Nvidia and other chipmakers as companies compete for large contracts. Even so, its latest results show that demand for AI technology is creating new opportunities across the semiconductor industry. Investors will now watch whether AMD can turn its strong sales outlook into lasting growth and higher profits.
