{"id":24984,"date":"2026-05-05T22:17:11","date_gmt":"2026-05-05T22:17:11","guid":{"rendered":"https:\/\/www.europesays.com\/news\/24984\/"},"modified":"2026-05-05T22:17:11","modified_gmt":"2026-05-05T22:17:11","slug":"amd-forecasts-quarterly-revenue-above-expectations-as-ai-chip-demand-stays-strong","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/24984\/","title":{"rendered":"AMD forecasts quarterly revenue above expectations as AI chip demand stays strong"},"content":{"rendered":"\n

By Zaheer Kachwala and Max A. Cherney<\/p>\n

May 5 (Reuters) – Advanced Micro Devices forecast second-quarter revenue above Wall Street expectations on Tuesday, helped by keen demand for its data-center chips as cloud computing companies accelerate \u200cspending on artificial-intelligence<\/a> infrastructure.<\/p>\n

Shares of the company jumped roughly 5% in extended trading after surging about 60% \u200cso far this year.<\/p>\n

AMD is seen by analysts and investors as a leading challenger to Nvidia<\/a>‘s dominance in AI chips, commonly referred to as graphics \u200bprocessing units or GPUs.<\/p>\n

But the company has tapped a new AI hardware opportunity in the form of central processing units as companies move from training models to running applications based on the technology, a process known as inference.<\/p>\n

Sales for both types of server chips are recorded in AMD’s data center segment, which jumped 57% to $5.8 billion in the first quarter, whereas analysts \u200cexpected revenue of $5.64 billion, according to data \u2060compiled by LSEG.<\/p>\n

Earlier this year, AMD said it had agreed to sell up to $60 billion worth of artificial-intelligence chips to Meta Platforms over five years in a deal that allows \u2060the Facebook owner to purchase as much as 10% of the chip firm. AMD also struck a deal with OpenAI<\/a> last year.<\/p>\n

The company expects quarterly revenue of $11.2 billion, plus or minus $300 million, compared with estimates of $10.52 billion.<\/p>\n

The company expects adjusted gross margins of \u200babout 56% \u200bfor the second quarter, compared with analyst expectations of 55.4%.<\/p>\n

For \u200bthe first quarter, adjusted for stock compensation and \u200cother items, AMD reported per-share earnings of $1.37 on revenue of $10.25 billion. Analysts expected revenue of $9.89 billion and earnings of $1.29 per share.<\/p>\n

While analysts perceive AMD as best-positioned to benefit from the surging CPU demand due to market share gains and product roadmap, competition from Intel, which gave a strong revenue forecast last month, has increased.<\/p>\n

After struggling with its chip production for several quarters, Intel is now ramping up its in-house manufacturing efforts to cater to growing CPU demand, posing a threat \u200cto AMD, which is beholden to tight manufacturing capacity at Taiwan’s \u200bTSMC.<\/p>\n

Unlike Intel, which designs and manufactures chips in-house, AMD outsources its manufacturing \u200bto contract chipmakers like TSMC.<\/p>\n

The semiconductor industry is \u200balso grappling with a global shortage of memory chips, stemming from a rush to secure \u200csupply of high-bandwidth memory used in data centers alongside \u200bGPUs and CPUs.<\/p>\n

The sharp increase \u200bin memory prices is also expected to hit demand for consumer electronics – a key market for AMD – as pricier computers are expected to turn consumers away. The company’s Client and Gaming segment, which includes its consumer \u200bhardware, rose 23% to $3.6 billion compared with \u200ca year ago.<\/p>\n","protected":false},"excerpt":{"rendered":"By Zaheer Kachwala and Max A. Cherney May 5 (Reuters) – Advanced Micro Devices forecast second-quarter revenue above…\n","protected":false},"author":2,"featured_media":24985,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[8801,15321,458,15322,2924,8,9,10663,7,15320],"class_list":{"0":"post-24984","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-stories","8":"tag-advanced-micro-devices","9":"tag-amd-stock","10":"tag-artificial-intelligence","11":"tag-cpu-demand","12":"tag-data-center","13":"tag-headlines","14":"tag-news","15":"tag-quarterly-revenue","16":"tag-top-stories","17":"tag-wall-street-expectations"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@news\/116524288850965777","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/24984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/comments?post=24984"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/24984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media\/24985"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media?parent=24984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/categories?post=24984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/tags?post=24984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}