AMD raises sales forecast as data center demand accelerates
Advanced Micro Devices expects second-quarter revenue of $11.2 billion, beating analyst expectations of $10.5 billion. The forecast signals that AMD is winning orders from major companies building out AI infrastructure.
First-quarter results showed the scale of AMD's opportunity. Data center revenue grew 57 percent year-over-year to $5.8 billion, while overall sales rose 38 percent to $10.3 billion.
Server chips are the growth engine
AMD's server CPU business is accelerating faster than its AI accelerator chips. The company expects server CPU revenue to grow more than 70 percent in the current quarter.
CEO Lisa Su said AMD is seeing strong demand for CPUs used in AI infrastructure. These generalist chips are increasingly deployed alongside specialized AI accelerators in data centers.
The data center CPU market itself is expanding rapidly. AMD projects the market will grow more than 35 percent annually and reach $120 billion by 2030.
Supply constraints emerging
AMD is working with suppliers to increase manufacturing capacity to meet demand. The company said it plans to boost wafer and back-end production significantly.
Memory shortages are creating headwinds elsewhere. AMD expects lower PC shipments in the second half of the year due to higher memory and component costs, though it still projects year-over-year PC revenue growth.
Su said AMD expects to generate tens of billions in annual data center revenue next year and aims to exceed its long-term growth target of 80 percent in coming years.
For sales professionals, AMD's trajectory reflects a broader shift: companies building AI systems are diversifying their chip suppliers beyond Nvidia, creating new competitive opportunities in enterprise deals. Understanding this market dynamic is essential for teams selling to data center operators and cloud providers.
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