AMD forecasts $11.2 billion in Q2 revenue as data center demand accelerates
Advanced Micro Devices said second-quarter revenue will reach $11.2 billion, beating analyst expectations of $10.5 billion. The forecast signals that AMD is winning significant orders from major data center operators seeking alternatives to Nvidia's dominant position in AI chips.
AMD's data center business grew 57 percent in the first quarter to $5.8 billion, exceeding analyst predictions of $5.61 billion. Overall company revenue rose 38 percent year-over-year to $10.3 billion.
Server CPUs drive growth
AMD's server CPU revenue will grow more than 70 percent in the current quarter, the company said. Demand for these general-purpose processors has increased as data centers deploy them alongside specialized AI accelerators.
CEO Lisa Su said AMD expects to generate tens of billions in annual data center revenue next year. She projects the data center CPU market will reach over $120 billion by 2030, growing at more than 35 percent annually.
To meet demand, AMD is working with suppliers to increase wafer and back-end manufacturing capacity, Su said on a conference call with analysts.
PC sales rise despite supply challenges
PC-related revenue climbed 23 percent to $3.6 billion in the first quarter. The company expects client revenue to grow year-over-year despite planning for lower second-half PC shipments due to higher memory and component costs.
Like other tech companies, AMD faces a memory shortage tied to the rapid build-out of AI data center infrastructure. Su said the company will manage this headwind while still outperforming the broader PC market.
For sales professionals, AMD's trajectory shows how supplier diversification and long-term capacity planning are reshaping enterprise purchasing decisions. Learn more about AI for Sales to understand how these market shifts affect customer strategies.
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