Lisa Su Expects 80% Revenue Growth in 2027. AMD Stock Is Still a Strong Buy, But It Demands Flawless Execution.

In early September, Advanced Micro Devices (AMD) executives took the stage at two investor conferences with the same message: A new kind of artificial intelligence (AI) was pulling in chip demand faster than they had planned. Two months later, CEO Lisa Su put a number on this demand and told investors AMD expects revenue to grow more than 80% in 2027.

Down almost 38% from all-time highs, AMD stock is valued at a market cap of over $700 billion. Despite the ongoing pullback, the chip maker has returned more than 6,000% over the last 10 years.

Is AMD stock still a good buy right now?

How Agentic AI Changed AMD's Server Story

AMD senior vice president Dan McNamara told the Goldman Sachs Communacopia + Technology Conference on Sept. 11 that early chatbots were simple, where you sent a prompt and received a reply.

Agentic AI is, however, different, as software agents run simultaneously, using multiple tools and querying databases. McNamara said AI agents run entirely on CPUs, or central processing units, the general-purpose chips in servers.

At its Financial Analyst Day last November, AMD forecast the server CPU market at $60 billion by 2030. CFO Jean Hu told the Citi Global TMT Conference on Sept. 8 that the figure is now more than $220 billion.

Investor relations executive Matt Ramsay said AMD aims to generate $100 billion in the server business, which translates to a market share of over 45%. Hu also projected server CPU revenue to grow more than 70% in 2027.

On the Nov. 3 earnings call, Su raised the above CPU revenue estimate and expects sales to double in 2027.

Data center AI revenue, which includes its Instinct AI chips, should grow even faster than AMD projected 90 days earlier. Data center should also make up more than 80% of total revenue next year. Su said the 80% company growth is more than twice the long-term model AMD laid out last November.

Hu emphasized that operating expenses should grow at less than half the pace of revenue, which should boost profit margins. Su was also clear about the limit. "Demand is higher than supply," she told Barclays analyst Tom O'Malley.