---
title: "AI Server Demand Surges: AMD Raises CPU Market Target to $120 Billion, Guides Q2 Revenue Above $11.2 Billion"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285300092.md"
description: "AMD reported revenue of $10.3 billion in the first quarter of 2026, a 38% year-over-year increase. Data center business growth reached 57%, hitting $5.8 billion, a new quarterly record. Non-GAAP earnings per share were $1.37, up 43% year-over-year; free cash flow surged 253% to $2.57 billion. Management raised its forecast for the server CPU market size from $60 billion to $120 billion due to surging AI demand. Q2 revenue guidance is $11.2 billion, exceeding market expectations by $500 million"
datetime: "2026-05-06T02:44:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285300092.md)
  - [en](https://longbridge.com/en/news/285300092.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285300092.md)
---

# AI Server Demand Surges: AMD Raises CPU Market Target to $120 Billion, Guides Q2 Revenue Above $11.2 Billion

AMD reported revenue of $10.3 billion in the first quarter of 2026, a 38% year-over-year increase. The data center business saw robust growth of 57% to $5.8 billion, setting another new quarterly historical high. Non-GAAP earnings per share were $1.37, up 43% year-over-year; free cash flow soared 253% to $2.57 billion, also hitting a historical record. The biggest highlight of the conference call was management's decision to double its forecast for the server CPU market size from $60 billion to over $120 billion, citing that inference and agent-based AI have significantly boosted demand for CPU computing power. Q2 revenue guidance is approximately $11.2 billion, beating market expectations by about $500 million.

![Image](https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/88d94d44-47b9-472f-81a7-7d6769e8c51b.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

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