Advanced Micro Devices reported strong earnings that beat expectations, sending its stock up about 15 percent after hours. The company posted $10.25 billion in revenue for the quarter, higher than forecasts, as demand for AI chips continued to rise.
CEO Lisa Su said the company’s data center business is now the main driver of growth. Sales in that segment jumped 57 percent from a year ago, showing how quickly companies are investing in AI systems. AMD also gave a strong forecast for the next quarter, expecting revenue to reach around $11.2 billion.
Investors are betting that AMD can keep growing as more firms build AI infrastructure. While it still trails Nvidia in the AI chip market, many believe there is room for more than one major player. AMD is also working with partners and plans to roll out new systems designed for large scale AI use later this year.
The wider chip industry is seeing strong demand but also facing supply challenges, including shortages linked to AI growth. Even so, AMD’s latest results show it is gaining ground as companies race to secure the computing power needed for the next wave of technology.
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