The chipmaker now expects 35% annual growth in the server CPU market, doubling its prior $60 billion projection by 2027.
Advanced Micro Devices (NASDAQ: AMD) revised its server CPU total addressable market (TAM) to $120 billion by 2027, up from $60 billion, citing surging demand for AI infrastructure. The company projects 35% compounded annual growth, a sharp increase from its prior 18% forecast in November.
AMD reported data center CPU revenue rose over 50% in Q1 and expects 70% growth in Q2. It anticipates strong demand through 2027, driven by higher core counts and rising average selling prices for next-generation CPUs.
The company aims to capture over 50% of the server CPU market, positioning itself as a key player in the AI-driven expansion of data center infrastructure.