AMD Chief Financial Officer Jean Hu declined to provide a 2027 gross-margin forecast because of uncertainty over the revenue split between higher-margin EPYC server CPUs and Instinct GPUs, which carry slightly lower margins. In the third quarter of 2026, AMD generated $13.4 billion in revenue, up 45% year over year, including $8.55 billion from its data-center segment, a 97% increase. For the fourth quarter, the company forecast approximately $17 billion in revenue and a non-GAAP gross margin of around 55%. CEO Lisa Su expects data-center revenue to more than double in 2027 and overall revenue to grow by more than 80%, while Bernstein analyst Stacy Rasgon estimates a 2027 gross margin of about 54%. The future mix between EPYC and Instinct will therefore determine whether this rapid revenue growth translates into proportional profitability.
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