Lisa Su, Chairman and Chief Executive Officer of Advanced Micro Devices Inc. (AMD), during the 2026 CES event on Monday, January 5, 2026 in Las Vegas, Nevada, USA.
Bridget Bennett Bloomberg | Getty Images
Advanced Micro Devices on Tuesday reported better-than-expected first-quarter results, and the company also beat expectations for revenue as demand for chips that power artificial intelligence workloads soars.
Shares rose about 5% in extended trading.
Here are the chipmaker’s earnings and LSEG’s consensus forecast for the quarter ended March:
EPS: $1.37 vs. adjusted forecast $1.29 Revenue: $10.25 billion vs. $9.89 billion forecast
Revenue increased 38% from $7.44 billion in the same period last year, the company said in a release Tuesday. Data center sales increased 57% to $5.8 billion from $3.67 billion in the same period last year.
AMD said it expects second-quarter revenue to be about $11.2 billion, compared to the expected $10.52 billion, according to LSEG.
AMD CEO Lisa Su said in a statement that the data center division is now “a key driver of our revenue and profit growth.”
“Looking to the future, we expect server growth to accelerate significantly as we expand supply to match demand,” Su said.
Net income for the quarter was $1.38 billion, or 84 cents per share, up from $709 million, or 44 cents per share, in the year-ago period.
AMD stock has more than tripled in the past year and is up 66% so far in 2026. Although the company lags far behind its rivals, Nvidia In the market for graphics processing units (GPUs) that power AI data centers, investors have recently poured money into AMD stock with optimism that the opportunity is big enough for multiple players.
Unlike Nvidia, AMD has been a leading manufacturer of central processing units (CPUs) for many years, and CPUs are experiencing a major resurgence as computing needs change with agentic AI. AMD stock soared last week after AMD and Intel announced they were partnering on a new instruction set for x86 CPUs. This new feature, called AI Compute Extensions, aims to improve performance and energy efficiency by increasing compute density by 16x.
The chip industry is facing a global memory shortage due to insatiable demand for AI, capacity constraints in both manufacturing and advanced packaging, and supply chain challenges from the Iran war.
All of this contributes to the excitement surrounding many semiconductor names. Intel just had its best month ever in April, with its stock more than doubling as the company reported first-quarter results that beat analyst expectations. Memory manufacturer stock prices micron It’s up more than 700% in the past year, giving the company a market capitalization of more than $700 billion.
In addition to CPUs and GPUs, AMD will ship Helios, its first full rack-scale system for AI data centers, later this year. It aims to rival Nvidia’s Grace Blackwell and Vera Rubin systems, which sell for more than $3 million.
OpenAI and meta Companies have already signed up to ship Helios, making AMD’s system a viable second choice for AI giants and hyperscalers desperate to secure enough compute.
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