This article first appeared on GuruFocus .
Advanced Micro Devices Inc. ( AMD , Financials ) might hit $100 billion in annual sales by 2027 as demand for artificial intelligence processors grows, according to an estimate released Sunday by Stone Fox Capital.The financial research group expects the yearly growth rate to be 80 percent, which would put sales at almost $94 billion in 2027.Also, AMD expects its data center revenue to climb by 50% quarter-over-quarter in Q4.The deal between AI chip maker with OpenAI, Meta Platforms and Anthropic might fuel future sales, the study suggests.Stone Fox Capital forecasts the ties might yield more than $60 billion in aggregate revenue in 2027.Further out, the business sees profits per share potentially hitting $25 in 2028.Using such figures, it asserts AMD is trading at almost 13 times estimated 2028 earnings.The numbers are the research firm's estimates, not verified future revenue or corporate projections.Whether AMD can make those objectives will depend on chip manufacturing, client deployments and competition in the AI accelerator industry.The next catalyst is AMD's fourth quarter performance, namely, if data center sales are accelerating at the pace expected in the research.
