# Advanced Micro Devices anticipates strong second-quarter revenue driven by high demand for its AI chips.

*semiconductor · news · 2026-05-06 · The Economic Times*

## Key points

- AMD raised its server CPU market growth forecast to over 35% annually, up from 18% previously.
- AMD expects second quarter server CPU revenue to grow more than 70% year-over-year.
- AMD is considering qualifying Intel as a manufacturing partner to secure chip production capacity.
- Rising memory chip prices are forcing AMD to plan for lower PC and gaming revenue in the second half.

**Companies:** Advanced Micro Devices, Meta Platforms, Intel, TSMC
**Countries:** United States, Taiwan

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/tech/technology/amd-forecasts-revenue-above-expectations-on-strong-ai-demand-shares-jump-12/articleshow/130841728.cms)

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