AMD reported strong Q1 2025 earnings, with data center revenue surging 57% year-over-year to $5.8 billion. The company also raised its server CPU market forecast, now expecting a compound annual growth rate of over 35% and a total market size of $120 billion by 2030.
Data center revenue hits record $5.8B
On the product roadmap, AMD detailed next-generation EPYC Venice processors based on the Zen 6 architecture and built on TSMC's 2nm process. The Instinct MI450 accelerator, also on TSMC 2nm, is currently sampling with customers and is expected to enter mass deployment in the second half of 2026. Additionally, EPYC Verano, targeting AI infrastructure, is planned for 2027.
Next-gen EPYC Venice on Zen 6 and 2nm
AMD has implemented price increases for its CPUs. According to ODM sources, consumer CPU prices have risen by 5-10% and server CPU prices by 10-20% since March.
CEO Lisa Su noted a shift in data center design from the traditional 4-8 GPUs per CPU to a denser 1:1 CPU-to-GPU ratio in next-generation facilities. However, AMD warned that PC and gaming demand may slow in the second half of 2025 due to rising memory and component costs, with gaming revenue expected to decline more than 20% in the second half of 2026 compared to the first half.
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