This article first appeared on GuruFocus.
Advanced Micro Devices Inc. (NASDAQ:AMD) rose 6.35% intraday after management told Citi’s Global TMT Conference that its data center business should double in 2027 to around $70 billion, with AI GPUs contributing in the low $40 billions and server CPUs the rest. Executives put the AI market at $2 trillion by 2030, spanning training, inference, enterprise computing and agentic work.
AMD named Anthropic alongside Meta Platforms Inc. (NASDAQ:META) and OpenAI as its three anchor customers, each tied to multi-gigawatt deployments across multiple product generations. The company has $29 billion to $30 billion in purchase commitments and said it received the largest allocation increase Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) gave any customer.
Supply remains tight across wafers, HBM memory, advanced packaging and substrates, and AMD said gross margin may edge lower in the fourth quarter and through 2027 as the MI450 ramps, with the focus on gross profit dollars instead of percentage. Server CPU TAM went to more than $220 billion by 2030 from a $60 billion estimate given last November. AMD also completed its acquisition of Taalas, adding chiplet-based silicon for ultra-low-latency inference.
https://finance.yahoo.com/technology/ai/articles/amd-guides-70-billion-2027-211135048.html
