Key Takeaways
- Advanced Micro Devices delivered Q1 earnings per share of $1.37, surpassing the $1.29 Wall Street forecast, while revenue reached $10.25B versus $9.89B anticipated
- The company’s data center division generated $5.8B in revenue, marking a 57% increase from the prior year and exceeding the $5.6B projection
- Management’s Q2 revenue outlook of $10.9B–$11.5B significantly outpaced the Street’s $10.52B consensus estimate
- Lisa Su, the company’s CEO, stated AMD is positioned to achieve “tens of billions” in AI-focused data center sales by 2027
- Shares of AMD climbed more than 12% during extended trading hours, building on a 60% year-to-date rally
Advanced Micro Devices delivered impressive first-quarter results that exceeded expectations on all key metrics, propelling shares upward by over 12% in Tuesday’s after-hours session.
The chipmaker reported earnings per share of $1.37, comfortably above the analyst consensus of $1.29. Total revenue reached $10.25 billion, surpassing Wall Street’s projection of $9.89 billion. These figures represent substantial growth compared to the year-ago quarter, when the company posted $0.96 in EPS on $7.43 billion in revenue.
Shares had already climbed approximately 60% since the start of the year prior to Tuesday’s announcement. During after-hours trading, the stock extended gains to $411.94 — representing a $56.68 increase from the regular session’s closing price of $355.26.
Advanced Micro Devices, Inc., AMD
The data center business emerged as the clear winner among AMD’s divisions. This segment generated $5.8 billion in revenue, representing 57% growth versus the same period last year and narrowly exceeding the $5.6 billion analyst estimate. The segment’s operating margin stood at 28%, which fell marginally short of Wall Street’s expectations.
The company’s second-quarter outlook stole the spotlight. AMD projected revenue in the range of $10.9 billion to $11.5 billion — substantially higher than the $10.52 billion consensus forecast from analysts. The company’s adjusted gross profit forecast similarly topped expectations.
The sole area of concern: operating expense projections came in modestly above what analysts had anticipated.
CEO’s Vision for AI Infrastructure Growth
During the earnings call, CEO Lisa Su delivered a confident message about the company’s AI trajectory. “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, noting that AMD anticipates surpassing its long-term expansion target of over 80% in the years ahead.
Su emphasized the expanding importance of central processing units within AI ecosystems. According to her projections, the addressable market for AMD’s CPU portfolio could expand at a 35% annual pace, reaching $120 billion by decade’s end.
“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 developing its inaugural rack-scale platform, dubbed Helios, which will integrate both GPUs and CPUs into unified server rack configurations — an approach comparable to Nvidia’s NVL72 offering.
Major Partnerships and Critical Milestones
AMD has secured substantial agreements with Meta Platforms and OpenAI, issuing warrants for a combined total of up to 320 million AMD shares that vest contingent upon delivery milestones and performance metrics. Initial shipments under these contracts are scheduled to commence during the latter half of 2026 — representing a crucial benchmark for the company’s scaling capabilities.
Beyond its data center operations, AMD’s remaining business units demonstrated solid performance. The Client segment delivered $2.9 billion in revenue compared to analyst estimates of $2.73 billion. Gaming revenue totaled $720 million, outpacing the $668 million forecast. Collectively, non-data-center revenue expanded 19% to reach $4.5 billion.
Intel, which released its quarterly results on April 23, similarly exceeded forecasts and experienced a 24% stock surge driven by robust data center performance. AMD now appears positioned to benefit from similar momentum entering the second quarter.
According to IDC projections, worldwide PC shipments are anticipated to decline 11.3% in 2026 due to memory component constraints. Apple’s Tim Cook referenced comparable margin challenges stemming from elevated memory costs during his company’s recent earnings discussion.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
