1 Reason to Buy AMD Stock Before 2027

AMD (AMD) just more than doubled its prior 2027 growth outlook, raising revenue growth guidance to over 80%. That is the headline number driving the stock's narrative heading into 2027.

The engine is data center AI. Per the article, that segment is expected to account for over 80% of AMD's total revenue, making the company's trajectory increasingly dependent on a single demand theme.

The margin story may matter as much as the top line. AMD expects operating expenses to grow at less than half the rate of revenue. Interpretation: if that holds, a large share of each incremental revenue dollar should drop toward operating profit, which is the mechanism behind the expected significant margin expansion.

Valuation is the counterweight to the growth pitch. AMD trades at roughly 20.5x 2028 earnings estimates. The Motley Fool frames that multiple as reasonable given the momentum, though that is an opinion, not a certainty. A 20.5x multiple on out-year earnings only works if the guidance converts into reported results.

The flagged risk is execution. If AMD cannot meet the high demand for its chips, the 80%-plus growth target and the margin leverage built on it come under pressure.