AMD’s Data Center Segment Poised to Surpass 70% of Total Revenue by Mid-2027

In the second quarter of 2025, data center products accounted for approximately 42% of Advanced Micro Devices’ (NASDAQ:AMD) total revenue. By the following quarter, that figure surged to 58%, representing $6.7 billion out of the company’s record $11.5 billion in total sales.

This dramatic shift stems from a stark growth disparity. Data center revenue increased by 107% year-over-year, while all other AMD product lines—including client processors, gaming chips, and embedded products—collectively grew by just 8%.

Given this substantial growth gap, the revenue mix will naturally shift on its own. I predict the data center segment will surpass 70% of AMD’s total revenue sometime in 2027, well before the Helios rack-scale ramp concludes. Below is the mathematical breakdown, step by step, along with the variables that could disrupt this trajectory.

Image source: AMD.

A Widening Spread

The 50% companywide growth in the second quarter masked two distinctly performing businesses. The data center segment, which houses EPYC server processors and Instinct graphics processing units (GPUs) for artificial intelligence (AI) computing, more than doubled year-over-year from roughly $3.2 billion to $6.7 billion. Meanwhile, the remainder of the company generated about $4.8 billion combined. Within that, client revenue reached $3.1 billion (up 23%), embedded grew 19%, and gaming declined 31%.

Third-quarter guidance further widens this gap. Management projects revenue near $13 billion, representing approximately 41% growth—down from the second quarter’s 50%. However, CFO Jean Hu noted that data center sales are expected to accelerate in the second half of the year. Essentially, nearly every incremental dollar in that guidance is driven by the data center segment.

If non-data center revenue simply holds near the $4.8 billion mark, data center sales would reach approximately $8.2 billion in the third quarter. This would constitute roughly 63% of total revenue, reflecting a five-percentage-point mix shift in a single quarter.

What Does It Take to Reach 70%?

For the segment to hit 70% of total revenue, it must grow to approximately 2.3 times the size of AMD’s other businesses. Last quarter, it was roughly 1.4 times that size.

If we project these rates forward a year—assuming data center growth decelerates from 107% to 90% while the rest of the business continues growing at about 8%:

By the second quarter of 2027, the segment would generate roughly $12.8 billion against approximately $5.2 billion for everything else, totaling about 71% of revenue. Even with a sharper deceleration to 85% growth, the segment still reaches the 70% threshold within a year.

Management is targeting even higher figures than my base scenario assumes. CEO Lisa Su stated on the company’s second-quarter earnings call, “Taken together, we now expect data center segment revenue to more than double year-over-year in 2027.”

Helios, AMD’s rack-scale AI system built on MI400 series chips, is already in production. Su noted that initial shipments are on track to begin late this quarter, with the ramp accelerating through the fourth quarter and into 2027.

OpenAI has committed to deploying 6 gigawatts of AMD GPUs, with the first gigawatt of MI450 series chips slated to begin deployment later this year. Meta Platforms inked its own 6-gigawatt agreement, with initial shipments following the same timeline. Additionally, Anthropic plans to deploy up to 2 gigawatts, starting with the first gigawatt in the first half of 2027.

AMD’s Other Businesses Could Get in the Way

The most likely way this prediction fails is not through a data center stumble, but through unexpected strength in the rest of the company.

Client revenue grew 23% in the latest quarter, a healthy rate obscured by the combined 8% figure because gaming declined 31% alongside it. However, at roughly $780 million per quarter, gaming may soon be too small for its declines to mask the client growth.

A PC upgrade cycle could propel client growth toward 30% while gaming stabilizes, lifting the rest of the company to roughly 20% growth. If data center growth holds at 90%, the segment would sit near 69% of revenue by mid-2027—just below the 70% line.

Of course, that outcome would be positive for AMD, likely pushing the crossover out by a quarter or two, but still well within 2027.

However, a Helios misstep would break the prediction outright. If shipments slip and data center growth is cut in half to roughly 50%, the segment might hover around 66% of revenue by mid-2027, pushing the 70% milestone into 2028.

Ultimately, the spread between 107% and 8% is wide enough that the prediction does not require a best-case 2027. It survives a real data center slowdown, with a client revival merely delaying the crossover by a quarter or two.

Investors, I would argue, are already pricing AMD as a data center company. As of this writing, the stock trades at approximately $474, or around 30 times what AMD is expected to earn in 2027.

The valuation appears reasonable next to the guided 41% revenue growth, but a smooth Helios ramp is already baked into the stock price.

I expect the crossover to occur around the middle of 2027, give or take a quarter.

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