AMD is seeing server CPU demand it didn’t fully anticipate, with CEO Lisa Su describing it as having “far exceeded” her expectations. Speaking at the Morgan Stanley Technology, Media & Telecom Conference earlier today, Su outlined how the landscape has shifted as agentic AI applications have taken off, pushing CPUs back into the spotlight alongside accelerators. The CPU-to-GPU ratio in AI compute workloads has evolved dramatically over the past few months, and top customers reportedly told Su that CPU demand sitting alongside AI was “under-forecasted.” Supply is tightening as a result. The sudden spike in customer commitments left little time for the supply chain to adjust, though AMD says it’s working closely with partners to ease existing bottlenecks and expects capacity to expand over the coming year. Su expressed confidence that AMD’s product lineup is well positioned to address training, inference, and agentic workloads going forward. We’ve also seen this play out at the customer level, with hyperscalers like Meta signing CPU agreements with AMD and NVIDIA, a sign that compute is diversifying away from a pure GPU focus.