U.S. chip maker Advanced Micro Devices reported earnings that beat Wall Street targets on Tuesday and said it expects its financial performance to improve in the second half of the year, Reuters writes.

AMD shares were up about 1.5 percent after the close of trading on Tuesday, and while AMD’s outlook fell short of expectations, it wasn’t as weak as some had feared. In the near future, the once-booming data center business will find it more difficult to stay afloat under the impact of cost adjustments.

According to analyst Wayne Lam of CCS Insight, “AMD has remained resilient and even made gains in data center chips, compared to Intel (NASDAQ:INTC).” Further success in the second half of the year is also assured by CEO Lisa Su, who is confident that AMD will continue to gain market share this year.

AMD’s data center segment revenue rose 42% to $1.7 billion in the fourth quarter, offsetting a 51% drop in customer segment revenue, which includes PCs, of $903 million.

PC shipments fell 16.5% to 292.3 million units in 2022, according to research firm IDC. According to Lisa Su, the PC market will shrink 10% this year and AMD will continue to ship below first-quarter consumption levels to reduce its inventory.

Weak results are also expected in the PC and gaming sectors, and revenue levels in both segments will decline in the first half of the year.

AMD’s adjusted fourth-quarter revenue rose 16% to $5.60 billion, with analysts on average expecting revenue of $5.50 billion, according to Refinitiv.

The company forecast revenue of $5.3 billion plus or minus $300 million for the current quarter. Analysts on average expected revenue of $5.48 billion, according to Refinitiv.