The Hidden Driver Behind AMD's Most Bullish 2026 Guidance

Shares of Advanced Micro Devices (NASDAQ: AMD) took a beating on Wednesday as investors digested the chip company's fourth-quarter report. AMD's results and guidance were generally solid, with revenue soaring 34% year over year in the fourth quarter and the company's outlook calling for 32% growth in the first quarter of 2026.One thing that stood out about AMD's outlook was its expectations for the data center segment. This segment houses AMD's EPYC server CPUs and its Instinct data center GPUs, and it grew revenue by 39% in the fourth quarter. AMD CEO Lisa Su expects growth to accelerate dramatically going forward. "...we are well-positioned to grow data center segment revenue by more than 60% annually, over the next three to five years and scale our AI business to tens of billions in annual revenue in 2027," Su said during the earnings call.AMD's AI accelerators will be a big part of the story as the company scales up its MI400 series chips and its Helios rack-scale solutions, but CPUs will play a surprisingly large role as well. As the AI industry has evolved from question-answer style chatbots to complex AI agents, the CPU is making a comeback and will help drive AMD's growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool