AMD expects data center to top 80% of revenue by 2027

The chipmaker raised its long-term mix target from around 70% after a record quarter driven by server CPUs and AI accelerators AMD now expects its data center business to account for more than 80% of total revenue in 2027. Its previous estimate was around 70%. That is a big revision for a company many people still associate with gaming graphics cards and desktop processors. The PC chip brand is steadily turning into a server and AI company that also sells PC chips. A record quarter sets up the new target The updated outlook follows a record third quarter of 2026. Data center revenue hit $8.5 billion in that period. That figure represented approximately 64% of AMD’s overall quarterly revenue of $13.38 billion. Data center sales grew 97% year over year, so the segment nearly doubled in twelve months. Total company revenue rose 45% year over year in the same quarter. For the fourth quarter, AMD guided revenue to approximately $17 billion. The company also expects server revenue to double in 2027 compared with the prior year. That expectation is ahead of earlier forecasts. The research behind the update credits rising demand for server CPUs and AI accelerators. Better supply conditions...