Key Highlights
- Advanced Micro Devices delivered Q1 EPS of $1.37, surpassing the consensus estimate of $1.29, with revenue reaching $10.25B versus the expected $9.89B
- The data center segment generated $5.8B in revenue, marking a 57% year-over-year increase and exceeding the $5.6B projection
- Second quarter revenue outlook of $10.9B to $11.5B significantly exceeded Wall Street’s $10.52B consensus forecast
- CEO Lisa Su conveyed robust confidence in achieving “tens of billions” in AI-focused data center revenue by 2027
- Shares of AMD climbed more than 12% during after-hours trading, building on a year-to-date gain of approximately 60%
Advanced Micro Devices delivered a comprehensive earnings victory for the first quarter, propelling its shares upward by over 12% during extended trading hours on Tuesday.
Earnings per share registered at $1.37, surpassing the analyst consensus of $1.29. Total revenue reached $10.25 billion, comfortably beating the anticipated $9.89 billion. For comparison, the chipmaker reported EPS of $0.96 on $7.43 billion in revenue during the same period last year.
Shares had already climbed approximately 60% year-to-date prior to Tuesday’s announcement. During after-hours trading, the momentum continued with shares reaching $411.94 — representing a $56.68 increase from the regular session closing price of $355.26.
Advanced Micro Devices, Inc., AMD
The data center division emerged as the clear performance leader. This segment generated $5.8 billion in revenue, reflecting a 57% year-over-year surge and marginally exceeding the $5.6 billion analyst projection. The segment’s operating margin reached 28%, falling just short of analyst expectations.
The second quarter outlook captured significant attention. AMD projected revenue ranging from $10.9 billion to $11.5 billion — substantially above Wall Street’s $10.52 billion consensus. The company’s adjusted gross profit forecast also exceeded analyst projections.
The single area of concern: operating expense guidance came in modestly higher than analyst estimates.
Lisa Su Discusses AI Data Center Strategy
CEO Lisa Su delivered a confident message during the earnings call. “We have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027,” she stated, further noting that AMD anticipates surpassing its long-term growth target of over 80% in the years ahead.
Su also emphasized the expanding importance of CPUs within AI infrastructure. She projected that the total addressable market for AMD’s CPU portfolio could expand at a 35% annual rate, potentially reaching $120 billion by 2030.
“As AI adoption scales, you need more inferencing and more agents. They all require CPUs for orchestration and data processing,” Su explained.
The company is gearing up to introduce Helios, its inaugural rack-scale system, which will integrate GPUs and CPUs into a unified server rack configuration — a design approach comparable to Nvidia’s NVL72 platform.
Major AI Partnerships and Upcoming Milestones
AMD has secured substantial agreements with Meta Platforms and OpenAI, offering warrants for as many as 320 million AMD shares in total, which vest contingent upon delivery and performance metrics. The chipmaker anticipates beginning shipments under these contracts during the latter half of 2026 — representing a critical milestone for its scaling capabilities.
Outside the data center business, AMD’s remaining segments demonstrated solid performance. Client segment revenue totaled $2.9 billion compared to the $2.73 billion estimate. Gaming revenue reached $720 million, exceeding the $668 million projection. Collectively, revenue from non-data-center segments grew 19% to $4.5 billion.
Intel, which disclosed its quarterly results on April 23, similarly exceeded expectations and witnessed a 24% stock surge driven by robust data center performance. AMD is now riding a similar wave of momentum entering the second quarter.
Industry research firm IDC forecasts an 11.3% decline in global PC shipments for 2026 attributed to memory supply constraints. Apple’s Tim Cook referenced comparable margin pressures stemming from elevated memory costs during last week’s earnings discussion.
