What Would It Take For AMD Stock To Move Higher? Trefis Team Tue, November 10, 2026 at 8:09 PM EST 3 min read AMD +3.92% ^GSPC -0.38% OPAI.PVT ORCL +1.39% ANTH.PVT Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Advanced Micro Devices (AMD) stock trades at 18.3 times its past twelve months of sales, compared with 3.1 for the S&P 500. At that price, buyers appear to expect a lot of growth already. Any further rise must come from something still ahead of the company. Management said on its November 3 call that one business will bring most of AMD's growth in 2027. What is that business, and has it started yet?
AMD Has Begun Shipping New Data Center Chips
That business is the data center. Management planned a ramp of new GPUs and server processors with its customers for 2027, and both started shipping in the third quarter. AMD began shipping its MI450 Series GPUs, and lead customers including Anthropic, Meta, Microsoft, OpenAI and Oracle brought their first Helios racks online quickly. AMD also began revenue shipments of its Venice EPYC server processors. Management said early demand is the strongest it has seen for any new EPYC generation.
The early sales showed up in the same quarter. Data center revenue reached a record $8.5 billion, up 97% from a year earlier, though that figure also covers strong demand for AMD's 5th generation EPYC processors, not only the new chips. Data center revenue rose 27% from the second quarter, mainly on the first MI450 Series sales and strong server revenue, management said.
How Much Data Center Growth Does AMD's Price Assume?
Management's target is for data center to be more than 80% of AMD's total revenue in 2027. In fiscal 2025 the segment brought in $16.6 billion, or 48.0% of the company's revenue, and by the third quarter of 2026 it was about 64% of revenue, management said. That larger share would also be of a larger company, because management expects total revenue to grow more than 80% in 2027. Not every market AMD sells into is growing, though: management is planning for PC market unit shipments to fall by a double-digit percentage in 2027. It also said it expects AMD to outperform that market as it delivers its Ryzen road map.
AMD stock returned 114.0% over the past year, against 13.7% for the S&P 500, so the price appears to assume a good part of the data center ramp already. Yet the stock closed on November 9 at 21.7% below its October 6 high, so it has not regained that high even after management gave its latest 2027 outlook on November 3.
Can AMD's Supply And Customers Keep Up In 2027?
Supply has not kept up so far: management said demand is higher than supply, and AMD is working with its supply chain partners to add more. AMD is spending cash to get there. Free cash flow fell to $554 million in the third quarter from $1.9 billion a year earlier, which management put down to more working capital and spending on capacity for the data center business. Inventory rose to $11.5 billion, up about $3 billion from the second quarter, which management said was to fulfill strong data center demand.
AMD's customers also have to be ready. During the November 3 call, the question arose whether AMD's anchor customers have the financing and the physical infrastructure for the deployments planned for 2027. Management's answer spoke to the physical side: it planned the ramp jointly with its customers, so it has good visibility into 2027, down to land, power and building shells.
Fourth-quarter data center revenue, against management's guide of about 50% growth over the third quarter, is the number to watch when AMD reports in February 2027.
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