AMD Raises 2027 Revenue Growth Outlook

AMD reported record third-quarter 2026 revenue of $13.38 billion, up 45% year over year, and adjusted earnings of $2.09 per share, beating expectations; Data Center revenue nearly doubled to about $8.5 billion. The company forecast fourth-quarter revenue of roughly $17 billion and said it expects revenue growth above 80% in 2027, rather than forecasting that data-center products will make up more than 80% of revenue. Gaming revenue fell 40%, and AMD expects gross margin to ease to 55% from 56%; free cash flow also fell short of estimates. A $1.1 billion noncash charge tied to penny-per-share warrants granted to OpenAI and Meta reflects potential shareholder dilution, while data-center lease and debt guarantees create added exposure if partners cannot meet their obligations. Analysts responded with a mix of price-target increases and cuts, citing the growth opportunity as well as valuation and execution risks.