AMD’s stock rises on surging demand for CPUs and GPUs for AI workloads
AMD reported a strong quarterly earnings beat, with revenue surging 38% to $10.25 billion, driven by soaring demand for its data center chips powering AI workloads. The company's data center segment sales rose 57% to $5.8 billion, with CEO Lisa Su expressing confidence in generating tens of billions of dollars in sales within the segment next year.
Advanced Micro Devices Inc. reported its first-quarter financial results, beating earnings and revenue expectations. Revenue soared 38% to $10.25 billion, driven by strong demand for data center chips powering AI workloads. The data center segment sales rose 57% to $5.8 billion, with the company's EPYC server chips and Instinct graphics processing units contributing to the growth. AMD's guidance for the current quarter is $11.2 billion in sales, ahead of analysts' forecasts. CEO Lisa Su said the data center division is now the primary driver of revenue and earnings growth, with expectations of accelerating server growth as supply meets demand. AMD's stock gained over 16% in late trading following the results.
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