AMD Q1 2026 earnings report

Advanced Micro Devices reported first-quarter earnings Tuesday that beat expectations; The company’s revenue forecast also beat estimates as demand for chips to power AI workloads grows.

The stock is up about 5% in extended trading.

Here’s how the chipmaker performed against LSEG consensus estimates for the quarter ending March:

• EPS: Adjusted expectations of $1.37 and $1.29
• Revenues: 10.25 billion dollars, while the expectation was 9.89 billion dollars

The company said its revenue rose 38% from $7.44 billion a year earlier. release on Tuesday. Data center sales increased 57% to $5.8 billion, from $3.67 billion in the same period the previous year.

AMD announced that it expects revenue of approximately $11.2 billion for the second quarter, compared to expectations of $10.52 billion, according to LSEG.

AMD CEO Lisa Su said in a statement that the data center unit is now “a key driver of our revenue and earnings growth.”

“Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand,” Su said.

Net income rose to $1.38 billion, or 84 cents per share, in the quarter from $709 million, or 44 cents per share, a year ago.

Shares of AMD have more than tripled in the past year, including a 66% increase in 2026. While the company remains far behind its competitors Nvidia In the market for graphics processing units (GPUs) to power AI data centers, investors have flocked to AMD’s shares recently on optimism that the opportunity is large enough for multiple players.

AMD, unlike Nvidia, has long been the leading manufacturer of central processing units, or CPUs, and is experiencing a major renaissance as agency AI transforms computing needs. AMD shares exploded last week after AMD and Intel announced they would partner on a new instruction set for x86 CPUs. The new feature, called AI Compute Extensions, aims to increase performance and energy efficiency by increasing computing density by 16 times.

The chip industry is facing a global memory shortage due to insatiable demand for artificial intelligence, as well as capacity constraints for both manufacturing and advanced packaging, and supply chain challenges resulting from the war in Iran.

This all adds to the craze for some semiconductor-related names. Intel had its best month ever in April; Shares more than doubled after the company announced first-quarter results that missed analysts’ forecasts. Memory Maker shares Micron It rose more than 700% last year, pushing the company’s market value to over $700 billion.

In addition to CPUs and GPUs, AMD is also expected to launch Helios, its first full rack-scale system for AI data centers, towards the end of this year. It is intended to rival Nvidia’s Grace Blackwell and Vera Rubin systems, which sell for more than $3 million.

Both OpenAI and Meta They have already signed up for Helios shipments, marking AMD’s system as a viable second option for AI giants and hyperscalers struggling to ensure adequate computing security.

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