AMD expects 2027 operating expenses to grow slower than revenue

The chipmaker projects operating leverage gains as data center revenue is set to more than double next year. AMD is signaling that 2027 will be less about spending and more about harvesting. The company told investors during its Q2 2026 earnings call that operating expenses next year are expected to grow at less than half the rate of its revenue, a projection that points toward meaningful expansion in operating margins as its data center business shifts into a higher gear. The numbers doing the heavy lifting AMD’s Q3 2026 results, released on November 3, gave the forecast some weight to stand on. Revenue for the quarter came in at $13.4 billion, a 45% increase compared to the same period a year earlier. The data center segment did more than its share of the work, posting $8.5 billion in revenue, up 97% year-over-year. That kind of growth rate in data center, nearly doubling in a single year, reflects accelerating demand for both EPYC server CPUs and AMD’s Instinct MI450-series GPUs, the latter of which are integrated into the company’s Helios rack platform. GAAP operating expenses for Q3 2026 were reported at $4.378 billion, a 25% increase year-over-year. Revenue grew nearly twice ...