Lisa Su, chairman and CEO of Advanced Micro Devices Inc. (AMD), during the 2026 CES event in Las Vegas, Nevada, US, on Monday, Jan. 5, 2026.
Bridget Bennett | Bloomberg | Getty Images
Advanced Micro Devices reported first-quarter earnings on Tuesday that topped expectations, while the company’s revenue forecast also beat estimates as demand rises for chips to power artificial intelligence work.
The stock jumped nearly 5% in extended trading.
Here’s how the chipmaker fared compared to LSEG’s consensus estimates for the quarter ended in March:
- EPS: $1.37 vs. $1.29 expected correction
- Net worth: $10.25 billion compared to $9.89 billion expected
Revenue fell 38% from $7.44 billion a year earlier, the company said in a Tuesday release. Data center sales increased 57% to $5.8 billion from $3.67 billion in the same period last year.
For the second quarter, AMD said it expects revenue of $11.2 billion, compared with expectations of $10.52 billion, according to LSEG.
AMD CEO Lisa Su said in a statement that the data center division is now “the main driver of revenue and earnings growth.”
“Looking forward, we expect server growth to accelerate reasonably as we balance 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 earlier.
AMD stock has been on a tear, more than tripling in the past year, including a 66% jump so far in 2026. Although the company is still far behind the competitor. Nvidia in the market for graphics processing units (GPUs) to power AI data centers, investors have flocked to AMD stock recently in hopes that the opportunity is big enough for many players.
Unlike Nvidia, AMD has long been a leading maker of central processing units, or CPUs, which are enjoying a major revival as AI computing demands. AMD’s shares rose last week when AMD and Intel announced that they would pair up on a new education set for x86 CPUs. The new feature, called AI Compute Extensions, aims to increase performance and power efficiency by increasing the computing density by 16 times.
The chip industry has faced global memory shortages due to insatiable demand for AI and capacity constraints for both manufacturing and advanced packaging, as well as supply chain challenges due to the war in Iran.
All of that contributes to a bewildering number of semiconductor-related terms. Intel just had its best month ever in April, with shares doubling as the company reported first-quarter results that beat analysts’ estimates. Shares are a memory maker Micron are up more than 700% over the past year, pushing the company’s market cap past $700 billion.
In addition to CPUs and GPUs, AMD is also expected to ship its first complete rack-scale system for AI data centers, Helios, later this year. It aims to compete with Nvidia’s Grace Blackwell and Vera Rubin systems that sell for more than $3 million.
Both OpenAI and Meta have already signed up for Helios shipments, marking AMD’s system as a viable second choice for AI giants and mobile hyperscalers to secure enough computing.
WATCH: How advanced packaging could be the next big bottleneck for AI
