TLDR
- AMD’s 2027 server revenue outlook is roughly 20% larger than the entire server market was in 2025
- Server revenue grew over 70% in Q2 2026, with growth expected to exceed 80% in H2 2026
- AMD has secured 1-gigawatt commitments from OpenAI, Meta, and Anthropic for its Helios AI rack systems
- AMD reported Q2 EPS of $1.66 on revenue of $11.54 billion, beating estimates, up 50.1% year over year
- Analysts hold a consensus “Moderate Buy” with an average price target of $546.87
AMD stock edged lower to $480.80 in premarket trading Thursday, down 0.44%, as investors digested a wave of data center and AI growth announcements from the company’s Technology Leadership Forum 2026.
Advanced Micro Devices, Inc., AMD
The numbers being thrown around are genuinely eye-catching. AMD’s Corporate VP of Financial Strategy Matt Ramsay said the company’s early 2027 server revenue outlook is roughly 20% larger than the entire server market in 2025. That’s not a typo.
Server revenue grew more than 50% in Q1 and more than 70% in Q2. Both cloud and enterprise revenue rose more than 70% in the same period. AMD now expects server revenue growth to exceed 80% in the second half of 2026.
Looking further out, AMD expects its data center business, including AI, to grow well above 100% in 2027. The company raised its estimate for the server CPU market to $220 billion by 2030 and is targeting more than 50% revenue share.
Helios and Customer Commitments
AMD plans to begin shipping components for its Helios AI racks to manufacturing partners in September. The package includes MI450 accelerators, Venice CPUs and Pensando networking products.
The company has locked in 1-gigawatt commitments from OpenAI and Meta. Anthropic has committed to 1 gigawatt, with ambitions to reach 2 gigawatts. Deployments are also planned through Oracle Cloud Infrastructure and Microsoft Azure.
A revenue ramp is expected in Q4, with another increase in Q1. Ramsay noted deployment speed will depend on access to land, power, infrastructure and capital.
AMD acquired ZT Systems to build out its rack-scale capabilities. Ramsay said ZT Systems helped sharpen the Helios design and reduce execution risk. The Helios ramp will start with a limited number of manufacturing partners before broadening.
ROCm and the NVIDIA Gap
AMD addressed its long-standing software disadvantage against NVIDIA’s CUDA ecosystem directly. Ramsay said ROCm improvements over the past 18 months have narrowed the competitive gap to the point where software is no longer a central concern in talks with major AI companies.
ROCm AI will launch alongside Helios, with continued updates planned for future accelerator generations.
On the CPU side, Venice scales to 256 cores and 512 threads. AMD plans to follow Venice with its Florence CPU family in 2028, and Ravenna is also in development.
AMD’s x86 server market share has grown from 0.4% to the high-40% range. Ramsay said supply, not demand, is the current bottleneck, and AMD is working with TSMC and others to secure enough capacity.
AMD reported Q2 EPS of $1.66, beating the $1.62 consensus. Revenue came in at $11.54 billion, ahead of the $11.31 billion estimate, up 50.1% year over year. The stock carries a consensus “Moderate Buy” rating and an average analyst price target of $546.87, with KeyCorp setting the high bar at $650.
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