Morningstar expects AMD’s server CPU business to surge more than 70% in 2027, citing AI infrastructure demand

AMD’s server central processing unit business could expand by more than 70% in 2027, according to Morningstar’s expectations, a projection cited in a recent market update focused on the company’s artificial-intelligence exposure.

The view ties the growth potential to demand for AI infrastructure, with CEO Lisa Su describing the market as expanding far more rapidly. The emphasis is on data-center buildouts that require specialized compute for training and running AI workloads, areas where server CPUs and related platforms are key building blocks.

In the same discussion, Morningstar’s call suggests AMD’s server CPU revenue trajectory could benefit as buyers shift capacity toward AI use cases, rather than relying solely on traditional enterprise computing cycles. The projection is framed as a forward-looking estimate for 2027, not a near-term forecast for the current year.

Su’s characterization of acceleration underscores a central thesis in the semiconductor sector: demand for compute is increasingly pulled forward by AI adoption, and that pull can translate into stronger orders for the components that support data-center scaling. For AMD, whose competitive position in servers has been driven by product performance, platform compatibility, and software ecosystem development, that shift can matter for share and mix.

The server CPU segment is also where investors look for visibility because it sits at the intersection of cloud and enterprise IT spending. When AI workloads become the dominant driver of new server deployments, the buyers typically evaluate hardware on performance per watt, memory and interconnect design, and the ability to integrate with accelerators and software stacks.

Still, the market update does not provide granular detail on what specific AMD product families, contract wins, or customer commitments underpin the Morningstar growth figure. It also does not disclose whether the estimate assumes particular AI server architectures, pricing levels, or timing of customer ramps.

As is common with analyst-driven expectations shared in market-news summaries, the projection should be treated as directional until AMD provides its own guidance or company-level disclosures that quantify AI-related demand. In particular, the update offers no breakdown of server CPU growth versus other segments such as graphics or AI accelerators, nor does it specify how much of the 2027 expansion would come from new design wins versus existing platform refresh cycles.

Looking ahead, investors will likely watch AMD’s upcoming commentary for signs of order momentum, data-center platform adoption, and how management frames AI infrastructure demand relative to traditional server cycles. Any additional specificity around customer engagements, design-in progress, or platform roadmaps would help determine whether the implied server CPU upside is likely to materialize.