# Advanced Micro Devices, the leading challenger to Nvidia in AI computing chips, soared 16.5 per cent to new heights in late trading on May 5.

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

## Key points

- AMD raised its data centre CPU market growth forecast to over 35% annually, up from 18%.
- AMD expects to generate tens of billions in annual data centre revenue by 2027.
- A surge in AI infrastructure spending drove AMD's Q2 revenue outlook above analyst expectations.
- AMD is increasing wafer and backend capacity in response to stronger AI-related demand.
- AI data centre buildouts are causing memory shortages, impacting second half PC shipments.

**Companies:** AMD, Intel, Alphabet, Amazon.com
**Countries:** United States

[Read the full story on The Straits Times](https://www.straitstimes.com/business/companies-markets/amd-shares-soar-to-new-record-after-ai-demand-fuels-blockbuster-forecast)

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