AMD Doubles Server CPU Market Forecast to $120B, Q2 Sales Seen Up 70%
QCOM•AMD now forecasts the server CPU market to expand over 35% annually, reaching $120 billion by 2030 thanks to surging 'Agentic AI' CPU workloads, doubling its prior 18% growth outlook. Data Center revenue rose 57% to $5.8 billion in Q1, with server CPU sales set for >70% growth in Q2.
1. Market Forecast Revision
AMD’s long-term server CPU market outlook was raised from an 18% annual growth rate to over 35%, with total addressable market now projected to exceed $120 billion by 2030. This reflects new ‘Agentic AI’ workloads that generate additional CPU compute tasks for orchestration and data processing.
2. Data Center Revenue Surge
In Q1, AMD’s Data Center segment revenue jumped 57% year-over-year to $5.8 billion, driven largely by EPYC processor sales. Management forecasts server CPU sales to grow more than 70% in Q2, signaling that expanded market demand is already translating into higher sales.
3. Competitive Landscape and Outlook
A rapidly expanding server CPU market is drawing intensified competition from traditional x86 rivals and custom ARM-based chips. AMD aims to capture over 50% share of the growing market, making execution and product differentiation critical for defending its position and sustaining margin expansion.
