AMD Reports Blockbuster Q1 Earnings With 38% Revenue Growth on AI Data Center Demand
Chipmaker AMD delivered strong first-quarter results with revenue climbing 38% year-over-year to $10.25 billion, significantly boosted by soaring demand for AI chips. The company raised its second-quarter revenue guidance well above analyst expectations, signaling continued momentum in data center growth.
Earnings Beat and Guidance Raise
Advanced Micro Devices reported first-quarter earnings Tuesday that topped expectations, with the stock ripping 16% higher on Wednesday, posting EPS of $1.37 vs. $1.29 adjusted expected and revenue of $10.25 billion vs. $9.89 billion expected. For the second quarter, AMD said it expects about $11.2 billion in revenue, versus expectations of $10.52 billion.
AI Data Center Surge
Revenue climbed 38% from $7.44 billion a year ago, with data center sales increasing 57% to $5.8 billion from $3.67 billion in the same period a year earlier. AMD CEO Lisa Su said the data center unit is now the "primary driver of our revenue and earnings growth," adding that the company expects server growth to accelerate meaningfully as it scales supply to meet demand.
Competitive Positioning
AMD's stock has been on a tear, more than tripling over the past year, including a 66% jump so far in 2026, while the company has trailed far behind rival Nvidia in the market for graphics processing units to power AI data centers, with investors pouring into AMD's stock on optimism that the opportunity is large enough for multiple players.