Advanced Micro Devices (AMD) reported first-quarter earnings that exceeded analysts' expectations, driven by robust demand for chips powering artificial intelligence workloads. For the quarter ended in March, AMD posted adjusted earnings per share of $1.37, surpassing the expected $1.29, and revenue of $10.25 billion, ahead of the anticipated $9.89 billion. This represented a 38% increase from $7.44 billion in the same period last year. Data center sales were a standout, climbing 57% year-over-year to $5.8 billion from $3.67 billion. Net income rose to $1.38 billion, or 84 cents per share, compared to $709 million, or 44 cents per share, a year ago [1].
For the second quarter, AMD projected revenue of about $11.2 billion, again beating consensus expectations of $10.52 billion. CEO Lisa Su highlighted that the data center unit is now the "primary driver of our revenue and earnings growth." She added, "Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand." In prepared remarks, Su expressed "strong and increasing confidence" in AMD's ability to reach tens of billions of dollars in data center AI revenue next year and to exceed the company's long-term growth target of greater than 80 percent in the coming years [1].
AMD's stock responded sharply to the results, soaring 16% on Wednesday. The company's shares have more than tripled over the past year, including a 66% increase so far in 2026, as investors bet on the expanding artificial intelligence market. While AMD has historically trailed Nvidia in the market for GPUs used in AI data centers, recent optimism has fueled investor interest, with the belief that the AI opportunity is large enough for multiple players [1].
Additionally, AMD shares received a boost last week following the announcement of a partnership with Intel to develop a new instruction set for x86 CPUs, called AI Compute Extensions, which aims to increase performance and energy efficiency by boosting compute density by 16 times. The chip industry continues to face a global memory shortage due to high AI demand and capacity constraints [1].
CONCLUSION
AMD's strong quarterly results and upbeat guidance underscore the company's growing momentum in the AI and data center markets. The 16% stock surge reflects investor confidence in AMD's ability to capture a significant share of the expanding AI opportunity. Forward-looking statements from management suggest continued growth and innovation, positioning AMD as a key player in the evolving semiconductor landscape.