AMD Projects Significant Growth in Data Center Revenue
Advanced Micro Devices (NASDAQ: AMD) reported a 34% year-over-year revenue increase in its fourth quarter, with projections for 32% growth in the first quarter of 2026. The company expects its data center revenue, which grew 39% in the last quarter, to accelerate by over 60% annually in the next five years. AMD CEO Lisa Su highlighted that the evolving AI landscape will elevate server CPU demand, particularly as AI applications transition to more complex agentic workloads.
AMD aims to capitalize on this trend with its EPYC server CPUs and the MI400 series AI accelerators. Su anticipates a strong double-digit expansion in the server CPU market by 2026 as the company increases supply capacity to meet rising demand. Despite fierce competition from Intel in the CPU market and Nvidia in GPUs, AMD’s strategic positioning in both segments could bolster its growth trajectory.
