(Reuters) – Advanced Micro Devices Inc (NASDAQ:) Inc expects second quarter revenue to exceed market expectations Tuesday. They are betting on steady demand of its chips that are used in gaming consoles and data centers.

Strong sales in cloud computing are fuelling strong demand for the chips needed to run data centers. AMD is now able to address a weakness that it had in its PC chip business during the pandemic.

Global spending on cloud infrastructure services increased 34% to $55.9Billion during the first quarter of 2018, according to Canalys research. This makes it a huge opportunity for those companies that supply chips and hardware to this sector.

It expects to generate revenue of around $6.5 billion. This includes an additional $200 million. According to data from Refinitiv, analysts expected revenue to average $6.38 trillion.

According to data from Refinitiv IBES, AMD’s first quarter revenue was $5.89 Billion, higher than analysts’ estimate of $5.52 Billion.