1 Reason to Buy AMD Stock Before 2027

AMD raised its 2027 revenue growth guidance to over 80%, more than double its previous forecast, driven by surging data center AI revenue which is expected to comprise over 80% of total revenue. With operating expenses growing at less than half the rate of revenue, the company expects significant margin expansion. Trading at approximately 20.5x 2028 earnings estimates, the stock is considered reasonably valued given its momentum, though execution risk remains if AMD cannot meet the high demand for its chips.