US chipmaker AMD eases AI spending fears as its data centre sales double and shares surge 8% after hours

AMD CEO Lisa Su told analysts that revenue is projected to climb more than 80% in 2027, ahead of the 77% growth Wall Street had pencilled in. Su said data-centre chips will account for 80% of next year's sales, cementing AI infrastructure as AMD's primary growth driver. The strong results also buoyed rival stocks, with Intel up 2%, Nvidia gaining over 1% and Broadcom adding 1.2%.

AMD struck deals with OpenAI and Meta — giving each warrants to buy up to 10% of the chipmaker — triggering a $1.07 billion non-cash charge in Q3.

Fourth-quarter revenue guidance of around $17 billion far exceeded analysts' $16.23 billion average estimate, calming concerns that momentum in AI spending is fading.

Demand for Su's Instinct AI chips and EPYC processors has surged, with Helios rack-scale AI systems and sixth-generation Venice processors having entered full production.