AMD forecasts its server CPU market to grow over 35% annually to more than $120 billion by 2030, driven by “Agentic AI” demand. Data Center revenue rose 57% YoY to $5.8 billion, with server CPU revenue expected to grow over 70% YoY in Q2, intensifying competition in Intel's core markets.
Management has revised its server CPU total addressable market growth forecast from about 18% annually to over 35% annually, projecting the market to exceed $120 billion by 2030. This upgrade reflects a new demand driver called “Agentic AI,” which management says will create additional CPU orchestration and data-processing tasks beyond current AI accelerator use cases.
AMD’s Data Center revenue climbed 57% year-over-year to $5.8 billion in Q1, becoming its fastest-growing segment. The company now expects server CPU revenue to increase by more than 70% year-over-year in Q2, indicating the TAM expansion is already translating into higher sales for high-margin EPYC processors.
The sharply larger server CPU market is likely to draw intensified competition from both legacy x86 rivals and new ARM-based chip entrants. AMD has set a goal of capturing over 50% share of the expanded market, posing a significant strategic challenge to Intel’s long-standing dominance in data-center CPUs.
