AMD analysts focus on AI data center growth, supply constraints after Q1 results

Advanced Micro Devices Inc. (AMD) reported a sharp increase in first-quarter data center revenue, driven by demand for AI infrastructure, EPYC CPUs and Instinct GPUs, according to management comments reviewed after its earnings call. Data center revenue rose 57%, with CEO Lisa Su saying the segment is now the primary driver of AMD’s revenue and earnings growth. Management cited stronger adoption by cloud and enterprise customers as AI workloads expand. Analysts are watching the rollout and customer uptake of AMD’s Venice CPUs and MI450 GPUs, as well as the company’s ability to manage supply constraints and cost pressures tied to memory and data center deployments. AMD shares recently traded at $458.01, up from $355.26 before the earnings report.