AMD Reports $10.25 Billion in Q1 Revenue as Data Center Sales Surge 57%

Advanced Micro Devices posted first-quarter revenue of $10.25 billion on Tuesday, topping analyst expectations of $9.89 billion, as demand for artificial intelligence chips drove a 57% jump in data center sales and sent shares up roughly 15% in after-hours trading.

The chipmaker's data center segment generated $5.8 billion in revenue, up from $3.67 billion in the same period a year earlier, cementing what CEO Lisa Su described as the division's role as the "primary driver of our revenue and earnings growth."

Adjusted earnings per share came in at $1.37, ahead of the $1.29 consensus estimate from LSEG. Net income climbed to $1.38 billion, or 84 cents per share, compared with $709 million, or 44 cents per share, a year ago. Total revenue rose 38% from $7.44 billion in the year-earlier quarter.

For the second quarter, AMD said it expects approximately $11.2 billion in revenue, well above the $10.52 billion analysts had forecast, according to LSEG.

In prepared remarks, Su said the company has "strong and increasing confidence" in its ability to reach tens of billions of dollars in data center AI revenue next year "and to exceed our long-term growth target of greater than 80 percent in the coming years."

AMD's stock has more than tripled over the past year, including a 66% gain so far in 2026, reflecting investor optimism that the AI infrastructure buildout is large enough to support multiple major chip suppliers alongside dominant rival Nvidia.

Unlike Nvidia, AMD has long been a leading manufacturer of central processing units, a category enjoying renewed demand as agentic AI applications shift computational requirements. AMD shares also rose last week after the company and Intel jointly announced a new instruction set for x86 CPUs called AI Compute Extensions, designed to boost compute density by 16 times while improving energy efficiency.

Later this year, AMD is expected to ship Helios, its first full rack-scale AI data center system, intended to compete with Nvidia's Grace Blackwell and Vera Rubin platforms, which sell for upwards of $3 million. Both OpenAI and Meta have signed up for Helios shipments, with Su saying deliveries are set to begin in the second half of the year.

Meta formalized a multiyear deal with AMD in February that includes deploying up to 6 gigawatts of AMD GPUs for AI data centers as well as AI-optimized CPUs.

"Together with our previously announced OpenAI partnership, these engagements position AMD as a core partner to the world's largest AI infrastructure builders, with deep co-engineering relationships and multi-year visibility into large-scale deployments," Su said in her prepared remarks.

The broader chip industry continues to contend with a global memory shortage, advanced packaging constraints, and supply chain disruptions tied to the war in Iran — conditions that have simultaneously pressured costs and intensified competition for available capacity.

AMD's results arrive amid a wider earnings-season surge in semiconductor stocks. Shares of memory maker Micron are up more than 700% in the past year, pushing its market cap past $700 billion, while Intel logged its best month ever in April after reporting first-quarter results that exceeded analyst estimates.

With Helios shipments on the horizon and server demand described as accelerating, the next several quarters will serve as a test of whether AMD can translate its growing roster of hyperscaler partnerships into durable market share gains against Nvidia's entrenched position.

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