Lisa Su, chief executive officer of Advanced Micro Devices Inc. noted a slow in the sale of personal computers (PC) this year after two years of robust growth.

Speaking at AMD’s analyst day, Su said that while the downtrend was natural after a considerable period of rapid growth, the high performance and adaptive computing market was “great”.

Research firm Canalys, reporting a third consecutive quarter of dismal growth in PC shipments, said that the demand for consumer and education PC segments has stagnated due to concerns on market saturation and inflation.

Meanwhile, AMD said on Thursday it has seen a surge in demand for its cloud computing, data center chops, and other spare parts used in artificial intelligence applications.

It is projecting a gross margin above 57 per cent in the short term and an operating margin somewhere above the 30 per cent. In the first quarter, the chip maker reported a gross margin of 48 per cent and an operating margin of 16 per cent.