AMD CEO Lisa Su said that data center is now the primary driver of the company’s revenue and earnings growth as it reported better-than-expected results for the first quarter. Speaking during the company’s earnings calls, Lisa Su said that AMD’s growth was broad-based with every segment increasing year-over-year, led by 57% data center revenue growth. AMD also gave a higher-than-expected revenue forecast for the current quarter, signaling continued demand for AI-related chips. According to a CNBC report, AMD shares rose about 15% in extended trading after the announcement, reflecting investor confidence in the company’s growth outlook.For the second quarter, AMD expects revenue of about $11.2 billion, higher than market estimates of $10.52 billion. Su also said the company has “strong and increasing confidence” in reaching tens of billions of dollars in data center AI revenue next year.
AMD earnings beat expectations
AMD reported adjusted earnings of $1.37 per share, higher than estimates of $1.29. Revenue came in at $10.25 billion, also above expectations of $9.89 billion. The company’s revenue rose 38% from $7.44 billion a year ago. Net income increased to $1.38 billion, compared to $709 million in the same period last year.The results come as demand for AI infrastructure continues to rise. Companies are investing heavily in chips used in data centers to power AI workloads.AMD has been gaining attention as an alternative to Nvidia in the AI chip market. While Nvidia still leads in graphics processing units (GPUs), AMD is seeing strong demand for both its GPUs and central processing units (CPUs).
New AI systems and partnerships
AMD is preparing to launch its new AI data center system, Helios, later this year. The system is designed to compete with high-end offerings from Nvidia. The company has already secured partnerships with major players like OpenAI and Meta, which plan to use AMD’s chips in large-scale AI deployments.“Together with our previously announced OpenAI partnership, these engagements position AMD as a core partner to the world’s largest AI infrastructure builders,” Su said.
