"The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business.”
Shares of AMD jumped by over 9% in pre-market trading on Wednesday, while shares of rival Nvidia (NVDA) rose 5%. Shares of Intel (INTC) were up 2%.
AMD's Data Center revenue, which includes sales of AMD's GPUs and CPUs, topped out at $2.8 billion, beating expectations of $2.75 billion. That's a 115% jump versus the same quarter last year, when AMD reported Data Center revenue of $1.3 billion.
AMD's current top GPU is its MI300X. During a press conference at the Computex event in Taiwan in June, AMD said partners and customers, including Microsoft, Meta, Dell, HPE, and Lenovo, are already adopting the chip. The company also revealed that its next-generation MI325X will be available beginning in Q4, while the MI350X will hit the market in 2025. AMD said it will roll out the MI400 in 2026.
It's not just AI that matters for AMD, though. Its Client segment, which includes sales of chips for PCs, is still an important part of its business. For the quarter, the company reported revenue of $1.5 billion beating expectations of $1.45 billion, and up from $998 million in the same period last year.
The Client segment beat comes as the PC industry continues its turnaround following a significant slowdown after the explosive growth seen at the onset of the pandemic.
But that was four years ago, and consumers are beginning to shop for replacements for the PCs they bought at the start of the pandemic. That, according to IDC, has resulted in worldwide PC shipments increasing 3% year over year in the second quarter, marking the second quarter of growth after eight consecutive quarters of declines.