AMD jumps more than 7% after forecasting revenue growth above 80% in 2027
Key Facts
AMD shares jumped more than 7% in extended trading on Nov. 4, 2026, after Chief Executive Lisa Su forecast that the company’s total revenue would grow by more than 80% in 2027, according to an Investing.com report citing Reuters. The guidance was above analysts’ expectations cited in the report, at 77%. Those figures put the focus on the company’s ability to turn data center-related demand into broad growth across its business. In the wider market, the Associated Press reported that Dow Jones Industrial Average futures rose 0.4% in a report published Wednesday. That figure does not confirm the 0.5% futures reading included in the draft; it is a different measure attributed to the agency’s report on Wednesday’s session.
The 2027 guidance is a key focus for investors assessing the company’s results, as the market compares management’s forecast with what analysts expected before the announcement. Lisa Su estimated revenue growth of more than 80%, against a 77% growth forecast that the report said was based on data cited by Reuters. The gap puts management’s forecast above the analysts’ estimates cited, without the report specifying revenue in dollar terms. The guidance also does not detail each business’s contribution to expected growth. Third-quarter data center figures and guidance for the fourth quarter of 2026 remain part of the operating picture referenced in the company’s official statement.
The company reported strong demand for data center products in the third quarter and provided guidance for the fourth quarter of 2026, according to its official statement. This comes as the report directs attention to the business’s figures and competition for AI infrastructure spending. But the available figures do not specify data center revenue or its growth rate, leaving total guidance of more than 80% as the leading figure associated with 2027. The report also cited declines in revenue from the gaming and client businesses, without giving the size of those declines in the available material. The combination of data center growth and weakness in the other two businesses shows divergence across the company’s segments in the quarter’s results, while the report provides no quantitative breakdown to measure each segment’s effect on the total.
The stock move came after U.S. midterm election results produced Democratic majorities in both chambers of Congress, according to the Associated Press. The agency said markets generally favor divided control of Washington between Republicans and Democrats, as it is seen as reducing the risk of sweeping policy changes. It quoted Stephen Brown of Capital Economics as saying the result would not materially change the near-term policy outlook: Democrats lack a Senate majority large enough to overcome legislative filibusters, and the president has veto power. In the initial reaction to the results, Nasdaq-100 futures fell as much as 2.4% and S&P 500 futures dropped 1.4%, before stabilizing and recovering, according to Reuters via Investing.com. ING analysts said the reversal of the initial moves was partly linked to Democrats not taking office until January.
Near-term market attention is turning to U.S. services activity data. An Investing.com report forecast that the Institute for Supply Management’s non-manufacturing services price index would register 54.8 in October, compared with 54.9 in September. That would represent a slight decline of 0.1 points based on the figures in the report. The index is among the data expected after the election reading and corporate results, while the available material does not specify its release date. AMD’s fourth-quarter 2026 guidance also remains a near-term indicator of the continued momentum in its data center business, according to the company’s statement.