AMD’s data center unit to benefit from AI-fueled GPU surge

Advanced Micro Devices (NASDAQ: AMD) is enjoying a surge in demand for its data center graphics processing units (GPUs), as the rapid adoption of artificial intelligence and machine learning applications reshapes enterprise computing needs.

Analyst forecasts based on Visible Alpha consensus show AMD’s data center GPU revenues are expected to climb from just $555 million in 2023 to $6.5 billion in 2025, marking a sharp acceleration as customers ramp up AI infrastructure investment.

The segment’s rise is poised to transform AMD’s revenue profile. Data center GPUs made up just over 2% of total revenue in 2023, but analysts expect this share to jump to 20% in 2025 and reach 32% by 2027. Alongside GPUs, AMD’s server business is also forecast to contribute meaningfully to growth, helping position the data center unit as the company’s largest revenue driver ahead of its traditional client and gaming segments.

Despite headwinds from potential China export restrictions and tariff risks, analysts expect a +23% year-on-year increase in overall net revenue in 2025 to $31.8 billion. The data center unit is forecast to contribute $15.4 billion, followed by $12.9 billion from the client and gaming segment, and $3.5 billion from embedded systems.