AMD Chair and CEO Lisa Su announced that the company now expects revenue to grow substantially above its prior target of greater than 35 percent. This increase is driven by growing demand for AMD’s accelerators and CPUs for artificial intelligence workloads and data centers.
Su stated that AMD is still in the early innings of a multiyear AI adoption cycle, and the opportunity ahead is enormous. The company is exceptionally well positioned to capitalize on this opportunity and deliver significant growth in the coming years.
The data center AI accelerator market is expected to grow more than 55 percent annually to about $1.4 trillion by 2030, while the server CPU market is expected to grow more than 50 percent annually to about $220 billion by 2030. Su said that AMD sees the overall market for high-performance AI computing growing about 40 percent annually over the next several years, approaching $2 trillion by 2030.
AMD’s data center segment revenue is expected to more than double year over year in 2027. During the latest fiscal quarter, the data center segment brought in $6.7 billion, a record amount and more than double year over year.
The segment saw its fifth consecutive quarter of record server CPU revenue, with cloud and enterprise sales each growing more than 70 percent year on year. Sales of AMD’s Instinct server-grade, data center GPU accelerators more than doubled year on year.
Su told analysts that AMD has seen strong compute market demand in data center accelerators and server CPUs. She expects continued strong growth in the third and fourth quarters. The data center business’ operating income was $2.1 billion, 31 percent of revenue.
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As a signal of AMD’s power in the AI market, the vendor disclosed that more than 3 million AI models now run out of the box on its portfolio. Open-source contributions to Radeon Open Compute have increased more than tenfold over the past year.
AMD’s sixth-generation Venice Epyc server processor family is in production now, with every major OEM on track to launch platforms and leading cloud providers planning deployments starting later this year.
AMD’s growth in the AI market is likely to have a significant impact on businesses and individuals relying on AI technologies. As AMD continues to deliver strong results, it’s likely that the company’s products will become increasingly important for companies looking to adopt AI solutions.
AMD’s client business revenue grew 23 percent year on year to $3.1 billion, up 6 percent quarter on quarter. The vendor’s Ryzen Pro—business-class versions of its standard Ryzen CPUs—saw sales grow more than 50 percent year over year during the quarter.
AMD’s embedded business “is recovering significantly,” with its revenue from the quarter of $977 million marking a 19 percent increase year on year and the business’ strongest growth in more than three years. The embedded business saw growth in networking; aerospace and defense; test, measurement and emulation; and communications.
Su said that the embedded x86 computer processor business “grew significantly in the quarter” and that the strategy AMD has been executing over the last few years is now delivering strong results. They are focused on continuing this growth.
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Su credited AMD’s fast thinking in supply chain with meeting server demand as it reached an inflection point over the past couple of quarters. The CEO said that the server CPU supply chain has been tight throughout the first half of the year “because much of this demand was unforecast.”
AMD is working very hard on ensuring that it gets the supply necessary to meet the very strong customer demand. The company expects improved supply to satisfy growth year on year.
The ramp of AMD’s Helios integrated, rack-scale AI infrastructure is just starting at the end of the vendor’s third quarter, with more substantial growth expected in the fourth quarter and beyond. Helios was ahead of AMD demand forecasts for 2027.
Su expects the inference market to grow “very substantially” over this year into next, with fast inference becoming more relevant and fueling AMD’s recent partnership with Cerebras. The companies’ joint offer should become available in Cerebras’ cloud in the fourth quarter and extend into 2027, which will be an important development in the AI security products space.
It is growing.
