AMD's Su explains what's behind massive forecast change as stock roars 19% on earnings
CEO Lisa Su highlighted the growing demand for central processing units, doubling her long-term forecast after strong first-quarter earnings.
AI Summary
AMD CEO Lisa Su doubled the company's long-term forecast for server CPU market growth to over 35% annually, up from a November estimate of 18%, citing surging demand driven by agentic artificial intelligence applications. The company beat first-quarter earnings expectations with revenue climbing 38% year-over-year, primarily from its data center business, and Su noted that demand clarity improved significantly after recent conversations with major customers. AMD's stock rose 15% following the earnings announcement, with the company projecting the server CPU market will exceed $120 billion by the end of the decade as workload demands shift toward CPUs for AI inference tasks.