AMD expects data center to top 80% of revenue by 2027

The chipmaker raised its long-term mix target from around 70% after a record quarter driven by server CPUs and AI accelerators

Tue 3 Nov 2026 · 17:22 EST · 3 min read

In AI

AMD now expects its data center business to account for more than 80% of total revenue in 2027. Its previous estimate was around 70%.

That is a big revision for a company many people still associate with gaming graphics cards and desktop processors. The PC chip brand is steadily turning into a server and AI company that also sells PC chips.

A record quarter sets up the new target

The updated outlook follows a record third quarter of 2026. Data center revenue hit $8.5 billion in that period.

That figure represented approximately 64% of AMD’s overall quarterly revenue of $13.38 billion. Data center sales grew 97% year over year, so the segment nearly doubled in twelve months.

Total company revenue rose 45% year over year in the same quarter.

For the fourth quarter, AMD guided revenue to approximately $17 billion.

The company also expects server revenue to double in 2027 compared with the prior year. That expectation is ahead of earlier forecasts.

The research behind the update credits rising demand for server CPUs and AI accelerators. Better supply conditions also mean AMD can actually ship the chips customers are asking for.

AI, tech, and the markets they move—in one daily briefing.

Daily. Free. Join 34,000+ readers across crypto, finance, and policy.

We respect your privacy. Unsubscribe anytime.

CEO Lisa Su pointed to strong customer inquiry and favorable supply chain conditions as the foundation for the more optimistic view.

Helios and the hyperscaler lineup

A large part of AMD’s AI push runs through Helios, its new rack-scale AI platform.

Instead of selling individual chips and leaving customers to assemble the rest, a rack-scale system delivers a pre-integrated cabinet of compute. Helios pairs AMD’s 6th-generation EPYC CPUs with its MI450-series Instinct GPUs.

The systems are in production, and initial shipments have begun.

The customer list is notable. Meta, OpenAI, Anthropic, Microsoft Azure, and Oracle are among the key customers for the platform.

Management is optimistic that data center AI revenue will grow even faster than earlier forecasts suggested. Two factors are cited: multi-gigawatt commitments from hyperscalers and steady growth in inference workloads.

From PC chipmaker to data center company

AMD has also lifted its long-range view of the server CPU market. The company’s total addressable market estimate for server CPUs now reaches $220 billion by 2030.

What this means for AMD and its rivals

The jump from approximately 64% today to more than 80% in 2027 assumes data center growth keeps running well ahead of the rest of the company, and that the Helios ramp and the server revenue doubling both arrive on schedule.

Nvidia remains the benchmark AMD is chasing in accelerators. Intel faces continued pressure in a server CPU market AMD now sizes at $220 billion by 2030.

The fourth quarter guidance of approximately $17 billion offers the next checkpoint.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.