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AMD projects strong data center growth and targets significant AI revenue through 2027
Tuesday, February 3, 2026 at 09:51 PM
AMD reports record quarterly revenue of $10.3 billion, driven by data center strength and a one-time $390 million contribution from MI308 sales in China following license approval. The company forecasts data center segment growth of over 60% in 2026 and targets tens of billions in AI-related revenue by 2027. First-quarter guidance anticipates sequential declines in client and gaming sectors due to seasonality, while the data center segment is expected to continue growing quarter-over-quarter.
Context
AMD reported record fourth-quarter revenue of $10.3 billion, a 34% year-over-year increase driven by an explosive ramp in AI and data center demand. This performance included $390 million from MI308 sales to China following a specific U.S. export license approval, though management characterized this as a non-recurring boost. While the company guided first-quarter revenue to $9.8 billion—reflecting a seasonal 5% sequential dip—the data center segment is expected to continue growing against typical market trends.
Looking ahead, AMD issued a bullish outlook for the mid-term, targeting more than 60% growth for its data center segment in 2026. This expansion is underpinned by the upcoming Venice CPU architecture and the scaling of the Instinct GPU roadmap. By 2027, the company aims to generate "tens of billions" in annual AI-related revenue. Investors are focusing on this rapid transition to an AI-first model, which has already pushed the company’s non-GAAP gross margin to 57%.
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