AMD’s first-quarter 2026 earnings<\/a> call, Su said the company now expects the server CPU total addressable market to grow more than 35% annually through the end of the decade, up sharply from its prior 18% projection shared in November.<\/p>\n“CPUs are a very critical part of data center infrastructure,” Su said, adding that AI-driven workloads are increasing compute requirements much faster than anticipated.<\/p>\n
AMD previously estimated the server CPU market would reach roughly $60 billion by 2030.<\/p>\n
That figure has now doubled as enterprises and hyperscale cloud providers ramp AI deployments that require more CPUs for orchestration, inference and broader infrastructure support.<\/p>\n
Lisa Su Says CPUs Are Essential To AI Infrastructure Boom<\/p>\n
Su also said that while GPUs remain central to AI acceleration, CPUs are increasingly necessary for managing AI agents, processing data and supporting head nodes in data centers.<\/p>\n
“As AI adoption scales, you need more inferencing,” Su said. “They all require CPUs for orchestration and the data processing.”<\/p>\n
She added that AMD is seeing stronger-than-expected customer demand across cloud and enterprise markets, fueled by rapid adoption of agentic AI systems.<\/p>\n
AMD Targets 50% Server CPU Share Amid EPYC Expansion<\/p>\n
AMD also said it expects server CPU revenue to grow more than 70% year over year in the second quarter, supported by strong demand for its EPYC processor portfolio, including Turin and future Venice chips.<\/p>\n
Su said AMD remains confident it can capture more than 50% of the growing server CPU market by expanding production capacity and broadening its processor lineup.<\/p>\n
“CPUs are critical for so many tasks that you are seeing a lot more discussion about CPUs in the market,” she said during the call.<\/p>\n
AMD Q1 Earnings Beat Wall Street Estimates<\/p>\n
AMD reported first-quarter revenue of $10.25 billion, surpassing Wall Street expectations of $9.89 billion. Adjusted earnings came in at $1.37 per share, ahead of analyst estimates of $1.29 per share.<\/p>\n
The company’s overall revenue climbed 38% compared to the same period last year.<\/p>\n
For the second quarter, AMD projected revenue of about $11.2 billion, with a possible variance of $300 million, exceeding analyst forecasts of $10.52 billion.<\/p>\n
The company also expects adjusted gross margin to improve to roughly 56%, up from 55% in the first quarter.<\/p>\n
Price Action: In after-hours trading on Tuesday, AMD shares surged 16.54% to $414. During the regular session, it closed at $355.26, reflecting a 4.02% gain, according to Benzinga Pro.<\/p>\n
According to Benzinga Edge Rankings, AMD is positioned in the 96th percentile for Momentum, highlighting robust performance<\/a> across short, medium and long-term trading periods.<\/p>\nDisclaimer:\u00a0This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.<\/p>\n
Photo Courtesy: jamesonwu1972 on Shutterstock.com<\/p>\n","protected":false},"excerpt":{"rendered":"AMD Raises Server CPU TAM As Agentic AI Accelerates Demand During AMD’s first-quarter 2026 earnings call, Su said…\n","protected":false},"author":2,"featured_media":58877,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[159],"tags":[215,218,213,692,212,851,855],"class_list":{"0":"post-58876","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-lisa-su","8":"tag-category-news","9":"tag-category-tech","10":"tag-cms-wordpress","11":"tag-lisa-su","12":"tag-pageisbzpro-bz","13":"tag-symbol-amd","14":"tag-tag-lisa-su"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@people\/116525676855003142","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/58876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/comments?post=58876"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/58876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media\/58877"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media?parent=58876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/categories?post=58876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/tags?post=58876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}