AMD ended the second quarter of 2021 on a high note, nearly doubling revenues from the prior year and more than tripling net income during the same period.

The chipmaker’s Q2 revenues topped $3.85 billion while net income swelled to $710 million, up 12% and 28% respectively from the prior quarter.

“AMD had another outstanding quarter," AMD CFO Devinder Kumar said. "Our high-performance computing product momentum is driving record revenue growth, record profitability, and significant cash generation.”

The company benefited from strong demand across its entire product stack, which includes client and data center CPUs and GPUs, and custom designs for select customers like Microsoft, Sony, and Valve.

While client computing continued to drive the majority of revenues during the quarter — $2.3 billion, up 65% from the prior year — AMD’s data center business had its strongest quarter yet, bolstered by the strength of its EPYC processor family.

AMD Doubles Data Center Revenues

Enterprise, embedded, and semi-custom revenues topped $1.6 billion, up 183% year over year during the quarter, driven by higher semi-custom product revenue and EPYC processor sales, Kumar said.

Meanwhile, data center related revenues doubled, and accounted for more than 20% of AMD’s total second-quarter revenue, CEO Lisa Su boasted on Tuesday’s earnings call.

Su touted growing demand for AMD’s data center chips, particularly in the cloud and high-performance computing spaces. “We are seeing very strong demand across our full server portfolio with second-gen EPYC processor revenue growing sequentially and third-gen EPYC processor sales more than doubling quarter over quarter,” she added.

Likewise, AMD’s Instinct data center GPU family continued to see strong adoption during the quarter. “We expect data center GPU revenue to grow in the second half of the year as we ramp production of our next-generation AMD Instinct accelerators and open source ROCm software to support multiple leading-edge supercomputer wins,” Su said.

She also highlighted the chipmaker’s latest cloud contracts, including new instances from Amazon Web Services, Microsoft Azure, Tencent, Alibaba, and Google Cloud, specifically calling out the latter for its plan to use AMD’s processors over competing x86 and Arm processors in its low-cost, scale-out Tau family of cloud instances.

AMD’s Q3 Outlook

Kumar expects the company’s momentum to maintain through the third quarter with revenues around $4.1 billion, fueled by continued demand within the company’s data center and gaming businesses.

“We expect data center revenue to continue growing faster than overall revenue based on the strength of our EPYC processors and Instinct accelerators, and the significantly expanded engagements we have built with the leading OEMs (original equipment manufacturers),” Su said.

AMD upped its outlook following the record quarter, and now expects annual revenue growth of about 60%, up from its prior guidance of about 37%.