AMD Shares Jump 8% as Data Center Revenue Doubles
Chipmaker beats Wall Street expectations driven by artificial intelligence demand
Advanced Micro Devices reported a 45% revenue increase in the third quarter which topped Wall Street projections. This performance was supported by the data center segment where sales nearly doubled compared to the same period last year.
Company shares rose 8% in after-hours trading. CEO Lisa Su stated that growth in artificial intelligence for data centers is expected to accelerate even faster than the company previously anticipated.
Data centers now account for 64% of AMD's total revenue compared to 47% last year. The company also highlighted the role of its central processors in supporting artificial intelligence applications that require high processing power.
To ensure expansion the company has reinforced its supply chain with wafers, substrates and memory components. Revenue from servers is expected to double by 2027 which would solidify AMD's position in the high-tech market.
Strengthening the infrastructure for artificial intelligence chips tends to increase competitiveness and production capacity for companies in the technology sector.
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