AMD said on the 5th (local time) that first-quarter revenue this year came in at $10.3 billion (about 15.182 trillion won) and operating income at $1.476 billion (about 2.177 trillion won). It was a surprise beat over market expectations. For the second quarter, AMD guided revenue of $10.9 billion to $11.5 billion (about 16 trillion to 16.8 trillion won), also above the market consensus of $10.52 billion.
AMD's first-quarter revenue this year rose 38% from a year earlier. Operating income increased 83%. First-quarter earnings per share (EPS) were tallied at $1.37. Su Lisa, AMD chief executive officer (CEO), said, "First-quarter results were very solid, driven by accelerating demand for AI infrastructure," and "The data center institutional sector became the key driver of revenue and profit growth."
AMD's first-quarter data center institutional sector revenue this year reached $5.8 billion (about 8.55 trillion won), up 57% year over year, leading overall growth. During the period, client and gaming institutional sector revenue was $3.64 billion (about 5.365 trillion won), up 23% from a year earlier. Embedded institutional sector revenue also rose 6% to $873 million (about 1.287 trillion won).
AMD projected that the data center central processing unit (CPU) market will grow more than 35% annually and exceed $120 billion by 2030. Su said, "Confidence is also growing that next year data center revenue will expand to tens of billions of dollars annually," adding, "We will exceed our long-term growth targets (over 80%) over the next few years." She added, "To meet this demand, we are working with supply chain partners to meaningfully expand wafer and back-end manufacturing capacity."
Su, however, said, "We expect PC shipments to decline in the second half due to rising memory and component prices," while adding, "Even in this environment, PC-related revenue will increase year over year and outperform the market average."