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AMD ticks up as Wall Street praises data center strength
AMD reported better-than-expected results and guidance, prompting praise from Wall Street for its data center business. Its shares rose 2.5% in premarket trading but remained below their session highs. Analyst Blayne Curtis said server CPU demand is strengthening and that AMD now expects 100% growth in server CPUs for 2027, up from 70%.
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What happened
AMD reported better-than-expected results and guidance, prompting praise from Wall Street for its data center business. Its shares rose 2.5% in premarket trading but remained below their session highs. Analyst Blayne Curtis said server CPU demand is strengthening and that AMD now expects 100% growth in server CPUs for 2027, up from 70%.
Confirmed
Global impact / market context
Stronger server CPU demand could raise AMD’s future data center sales if shipments and customer demand support the outlook. The analyst also expects AI GPU revenue to exceed server CPU revenue in the December quarter, while weaker PC sales could limit growth elsewhere.
Analyst inference
The article describes mixed signals across AMD’s businesses: data center demand is strengthening, while the PC market is expected to contract as consumers face higher memory prices. Embedded products are described as a potential bright spot, with a modest improvement to gross profit per sale.
Analyst inference
What to watch
- Check whether AMD’s reported server CPU growth and shipments keep pace with its 100% growth expectation for 2027, since that would support the data center outlook. Analyst inference
- Watch for the December-quarter results to show whether AI GPU revenue exceeds server CPU revenue, as the analyst expects; that would clarify the business mix. Analyst inference
- Track PC unit demand and memory pricing, which the article links to weaker consumer purchases; further declines could weigh on AMD’s PC-related sales. Analyst inference