CEO Lisa Su Said Data-center Revenue Should More Than Double by 2027, With Total Growth Exceeding the Prior 35% Target

AMD shares slid 7.4% to $480.28 on Wednesday, erasing about $61.1 billion in market value, as the chipmaker's upbeat revenue forecast failed to meet sky-high investor expectations for clearer AI-driven growth. The company projected third-quarter revenue of roughly $13 billion, plus or minus $300 million, beating analysts' $12.52 billion estimate, per LSEG data. CEO Lisa Su said data-center revenue should more than double by 2027, with total growth exceeding the prior 35% target.

Data-center sales already doubled to $6.72 billion. Bernstein's Stacy Rasgon noted expectations had risen after Intel's strong results, while TD Cowen called the numbers "objectively good" but facing a "very high bar" after recent AI customer deals and a sharp stock rally. AMD has more than doubled this year on hopes it will rival Nvidia in AI chips. Last month, it signed agreements with Anthropic and Core Scientific to expand AI infrastructure.