AMD CEO Lisa Su announced that the data center segment has become the primary driver of the company's revenue and earnings growth, following better-than-expected first-quarter results. Speaking during the earnings call, Su noted that AMD's growth was broad-based, with every business segment increasing year-over-year, led by a 57% surge in data center revenue.
Strong Financial Performance
AMD reported adjusted earnings of $1.37 per share, surpassing analyst estimates of $1.29. Revenue reached $10.25 billion, exceeding expectations of $9.89 billion. This represents a 38% increase from $7.44 billion in the same period last year. Net income rose to $1.38 billion, compared to $709 million a year ago.
The company also provided a higher-than-expected revenue forecast for the current quarter, signaling sustained demand for AI-related chips. According to a CNBC report, AMD shares surged approximately 15% in extended trading following the announcement, reflecting strong investor confidence.
Q2 Outlook and AI Revenue Projections
For the second quarter, AMD expects revenue of about $11.2 billion, above market estimates of $10.52 billion. Su expressed “strong and increasing confidence” in reaching tens of billions of dollars in data center AI revenue next year.
AI Infrastructure Demand Drives Growth
The results come amid rising demand for AI infrastructure, as companies invest heavily in data center chips to power AI workloads. AMD has emerged as a key alternative to Nvidia in the AI chip market. While Nvidia continues to lead in graphics processing units (GPUs), AMD is experiencing strong demand for both its GPUs and central processing units (CPUs).
New AI Systems and Strategic Partnerships
AMD is preparing to launch its new AI data center system, Helios, later this year. Designed to compete with Nvidia's high-end offerings, Helios is part of AMD's strategy to capture a larger share of the AI chip market. The company has already secured partnerships with major players such as 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 stated.
