AMD expects revenue to grow more than 80% in 2027 as demand for artificial intelligence chips expands, Chief Executive Lisa Su said in earnings-call remarks carried by Yahoo Finance.
The company's data center AI business is expected to more than double, while its data center processor business is expected to roughly double. The forecasts put both businesses on course for further growth after an expansion in demand from cloud computing providers.
Yahoo Finance aired the remarks on its Sozzi Unleashed programme published Nov. 4. Su linked demand for processors to the spread of AI agents, software that performs tasks across applications and computer systems.
Cloud providers added processor capacity during the quarter to support agents for individuals and businesses. Companies are putting the software to work in software development, supply chains and information technology operations, extending its use across several parts of their businesses.
“These agents work continuously and in parallel across applications and enterprise systems, adding to accelerator demand while creating a substantial increase in CPU demand,” Su said. These specialised chips are designed to handle specialised computing tasks, while CPUs are general-purpose processors.
The demand she described spans both types of chips. Agents require additional processing capacity while also adding to demand for the specialised chips used in AI computing. Su described personal and business agents as a growing application for processors operated by cloud providers.
Turning to next year, Su described the growth figures as markers for the business. “We think 2027 is going to be a very strong momentum year for both the CPU business as well as the data center AI business.”
The company's forecast also points to a change in the relative size of its two data center businesses. Su expects the AI business to overtake the processor business in the fourth quarter, before both expand through the following year.
“Q4 is the first quarter where the data center AI business will cross over in terms of size,” she said, comparing it with the processor business. “And we would expect both businesses to grow nicely throughout the year.”
Su did not give an exact growth rate for the AI business beyond saying it would more than double. Her remarks also left open how large the gap between the two businesses would become after the expected fourth-quarter crossover.
