Advanced Micro Devices, the world's second-largest computer processor manufacturer, issued a robust forecast for the current quarter, indicating it is benefiting from the artificial intelligence investment boom. The company stated on Tuesday that second-quarter sales are projected to reach $11.2 billion, plus or minus $300 million. This surpasses the average analyst estimate of $10.5 billion, based on compiled data. Shares of AMD rose as much as 7.1% in extended trading. The stock had previously closed at $355.26 in New York, bringing its year-to-date gain to 66%. This optimistic outlook signals that AMD is securing orders from major spenders in the field of artificial intelligence computing. Although Nvidia remains the dominant supplier of AI processors, data center clients are increasingly seeking alternative options, a trend that benefits Advanced Micro Devices. The scale of related spending is substantial. Companies such as Google under Alphabet Inc., Amazon, and other so-called hyperscale cloud providers have indicated that their AI expenditures could reach as high as $725 billion by 2026. First-quarter sales increased by 38% to $10.3 billion. Excluding certain items, earnings per share were $1.37. Analysts had previously anticipated revenue of $9.89 billion and earnings per share of $1.28. Revenue from AMD's data center segment grew 57% to $5.8 billion, exceeding the average analyst expectation of $5.61 billion. Sales related to personal computers increased by 23% to $3.6 billion. "Looking ahead, we expect server revenue growth to accelerate significantly as we ramp our supply to meet demand," said CEO Lisa Su in the statement. "We delivered strong first-quarter results, driven by accelerating demand for AI infrastructure, with data center now representing the primary driver of our revenue and profit growth."
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