AMD expects operating expenses to grow at less than half the rate of revenue in 2027, which should drive a substantial expansion in operating margins. In the third quarter of 2026, revenue reached $13.4 billion, up 45% year over year, while data center revenue nearly doubled to $8.5 billion. The company forecasts approximately $17 billion in revenue for the fourth quarter of 2026 and more than double its data center revenue in 2027. This growth is supported by EPYC processors, Instinct MI450 accelerators and demand from customers including Meta, OpenAI, Anthropic, Microsoft and Oracle. Key risks include the MI450 production ramp, competition from Nvidia and custom chips developed by hyperscalers, and a potential slowdown in artificial intelligence spending.
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