AMD (AMD) investor relations material

Market trends and growth outlook

• Server CPU market experiencing rapid growth, with over 50% growth in Q1 and over 70% in Q2, driven by a shift from AI training to inference workloads.

• Forecasts indicate over 80% growth in server CPUs in the second half of the year and at least 70% growth next year, with early 2027 revenue projections 20% larger than the entire 2025 server market.

• Data center business, including AI, is expected to grow more than 100% next year, with significant demand from major AI model companies.

• Total addressable market (TAM) for server CPUs projected at $220 billion by 2030, with agentic workloads representing about two-thirds.

• Ambition to reach over 50% revenue share of the expanded TAM, supported by deep customer engagements and a robust roadmap.

Product innovation and roadmap

• Launching 2 nm Venice CPUs, sampling now and shipping broadly, with advanced packaging and high core/thread counts for agentic workloads.

• Helios AI racks, featuring MI450 GPUs and Venice CPUs, begin shipping in September, with a rapid revenue ramp expected in Q4 and Q1.

• Florence CPU lineup planned for 2028, targeting a range from high-performance single-thread SKUs to high core/thread count CPUs.

• Significant investment in the Taiwanese ecosystem, including a $10 billion commitment to backend capacity and advanced packaging.

• Acquisition of ZT Systems to strengthen system-level talent and de-risk rack-scale product design.

Supply chain and capacity management

• Strong partnership with TSMC, leveraging accurate forecasts and lead times to secure supply and support growth.

• Advanced packaging and memory supply are key constraints, with close collaboration with OEM, ODM, and hyperscale partners.

• Focused ramp with select ODM partners before broader rollout to ensure quality and stability at scale.

• Near-term supply remains tight, but long-term adjustments are underway to meet future demand.