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AMD shares jump as AI-driven data-center strength fuels growth outlook

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AMD shares jump as AI-driven data-center strength fuels growth outlook

Business News Tech AI AMD shares jump as AI-driven data-center strength fuels growth outlook

AMD, which recently joined the ranks of trillion-dollar companies, has gained about 126% this year and is poised to add about $58 billion in market value if premarket gains hold. The company's strong outlook highlighted growing momentum in its server processor business, signaling that spending on AI computing was extending beyond Nvidia's accelerators, which dominate the market.

Advanced Micro Devices rose 7.3% in premarket trading after the US chipmaker forecast faster growth through 2027, reassuring investors that demand for AI infrastructure remains strong. AMD, which recently joined the ranks of trillion-dollar companies, has gained about 126% this year and is poised to add about $58 billion in market value if premarket gains hold. The company's strong outlook highlighted growing momentum in its server processor business, signaling that spending on AI computing was extending beyond Nvidia's accelerators, which dominate the market.

"We see demand across the data-center business, across our CPU business, as well as our data-center AI business ," CEO Lisa Su said, adding the company had been preparing for that growth for several years. Su said on Tuesday that the company expects overall revenue to rise more than 80% in 2027, which is higher than the 77% growth analysts estimate, according to LSEG data. AMD's product roadmap and expanding software ecosystem position it to capture a meaningful share of the AI market, while strengthening its role as the leading alternative to Nvidia and supporting further gains in server CPUs, said analysts at TD Cowen.


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