Prime Highlights
- Advanced Micro Devices has forecast quarterly revenue of about $11.2 billion for the second quarter, above market estimates.
- AMD’s data centre segment posted strong results in the first quarter, with revenue rising 57% to $5.8 billion.
Key Facts
- Chief Executive Officer Lisa Su said the server CPU market is expected to grow at over 35% annually, reaching more than $120 billion by 2030.
- AMD signed a deal to supply chips to Meta Platforms and partnered with OpenAI to grow its share in the chip market.
Background
Advanced Micro Devices has forecast higher-than-expected revenue for the second quarter on the back of strong demand for its chips. Cloud computing firms are increasing infrastructure spending, boosting AMD’s data centre business. The outlook signals growing confidence in the company’s products.
The company expects quarterly revenue of about $11.2 billion, above market estimates. Its shares rose sharply after the announcement, adding to a strong rally this year. Analysts see the performance as a sign of sustained demand for high-performance computing solutions.
AMD’s data centre segment posted strong results in the first quarter. Revenue rose 57% to $5.8 billion. The growth came from higher adoption of its server chips, including CPUs and GPUs. The company has widened its focus to cover more computing needs.
Chief Executive Officer Lisa Su said the server CPU market is expected to grow at over 35% annually, reaching more than $120 billion by 2030. The company expects solid profit margins in the coming quarter, backed by strong demand for its products.
AMD signed a deal to supply chips to Meta Platforms and partnered with OpenAI. Both deals are seen as key steps in growing its share in the chip market. The company expects new business opportunities in the coming years.
AMD remains focused on growth through deals and new chip development. Strong demand for its products is expected to support profit margins in the coming quarter.
