--- title: "CPUs on a tear, Helios near—Is AMD finally turning the corner?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40449927.md" description: "AMD reported its Q1 2026 results after the U.S. market close on May 6 (Beijing time). The quarter covered the period ended Mar 2026. Key takeaways:1) Overall results: $AMD(AMD.US) delivered revenue of $10.25bn (+37.8% YoY), beating market est. of $9.9bn. Growth was led by Data Center and Client.GAAP GPM was 52.8%. It expanded 260bps YoY..." datetime: "2026-05-06T01:51:37.000Z" locales: - [en](https://longbridge.com/en/topics/40449927.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40449927.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40449927.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # CPUs on a tear, Helios near—Is AMD finally turning the corner? AMD (AMD.O) released its Q1 2026 results (to Mar 2026) after the U.S. market close on May 6 Beijing time. Key points: **1) Overall results:** $AMD(AMD.US) **reported revenue of $10.25bn in Q1 2026, up 37.8% YoY,** beating the Street (~$9.9bn). Growth was driven by Data Center and Client. **GAAP GPM was 52.8% (+260bps YoY),** helped by mix shift toward higher-margin Data Center. **2) Opex:** R&D was $2.4bn (+38.7% YoY), and SG&A was $1.25bn (+41% YoY). **Core opex growth tracked revenue, keeping the core opex ratio around 35%**. Net income was $1.38bn, largely affected by non-recurring items. **On an operating basis, core OP was $1.77bn (+57% YoY) with a 17% core OPM**. **3) Segment mix:** Data Center and Client together accounted for over 80% of revenue. **1) Client: gaining share, with revenue of $2.89bn, up 26% YoY.** Global PC shipments rose 3.8% YoY, yet AMD’s Client revenue grew much faster, reflecting continued share gains in PCs. **2) Data Center: server CPU in an upcycle; MI450 anticipated.** Q1 revenue was $5.78bn, up 7% QoQ, driven mainly by tight supply-demand for server CPUs. **i) Server GPU:** AI GPU revenue dipped slightly QoQ due to adjustments in China, including roughly $390mn from last quarter’s MI308 shipments to China. Beyond near-term prints, **the market is focused on the MI450 family ramping in 2H26, AMD’s first move from single-die delivery to rack-scale clusters**. AMD has lined up collaborations with OpenAI and Meta, and MI450’s ramp will directly inform deliveries. **ii) Server CPU:** stronger server CPU demand made this the largest incremental driver in Q1. Dolphin Research estimates server CPU revenue at around $3.3bn, up 15% QoQ. Third-party data show AMD’s server CPU unit share has exceeded 20%. **4) Guidance:** Q2 2026 revenue of $10.9–11.5bn (above the Street at ~$10.5bn), midpoint $11.2bn implies +9% QoQ. Non-GAAP GPM guided to ~56% (vs. Street 55.3%). **Dolphin Research view: CPU upcycle in place; awaiting MI450 for dual-engine growth** Q1 topline beat was solid, primarily driven by server CPUs. **MI355 AI GPU was softer QoQ** on China-related adjustments, while investors are more focused on MI450 later this year. AMD has signed collaboration frameworks with OpenAI and Meta for MI450, which transitions delivery from single-die to rack-scale clusters. Beyond Q1, guidance was strong. **Q2 revenue is guided to $10.9–11.5bn (+6–12% QoQ), ahead of the ~$10.5bn consensus,** and non-GAAP GPM around 56% (vs. 55.3% consensus). **The upside next quarter is mainly server CPU-driven,** and Dolphin Research expects server CPU and related revenue to reach about $3.8bn, up 15% QoQ. Outside the quarter, the Street is focused on several items: **a) Hyperscaler capex: cloud majors remain the main chip buyers in this AI boom.** All four reported recently, with **Meta and Microsoft explicitly raising capex**. **For 2026, Dolphin Research estimates combined capex for Meta, Google, Microsoft and Amazon could exceed $700bn, up 70%+ YoY,** with a **back-half weighted** profile as NVIDIA’s Rubin and AMD’s MI450 ramp in 2H. **b) CPUs: moving to center stage in AI** With PCs up 3.8% YoY in Q1, Intel’s Client revenue grew just 1.3% YoY, while **AMD grew 26%**, **showcasing rising CPU competitiveness**. **Across total CPU (PC + server), AMD’s share has kept climbing in recent years and has overtaken Intel in desktop**. Training prioritized raw compute, leaving CPUs less central, while **in inference, latency matters more**. **CPUs handle orchestration and data pre-processing, directly affecting throughput, latency and efficiency**, lifting AI server CPU demand and pricing. Meanwhile, AMD continues to **chip away** at Intel’s share. **Third-party data indicate AMD’s server CPU unit share has surpassed 20%**. **c) AI GPU: MI355 is the workhorse today; the focus is on MI455 in 2H**. The MI355-to-MI455 upgrade centers on **compute, memory and clustering**. **Compute is roughly doubling (moving to 2nm)**, and **memory upgrades (HBM3E to HBM4) boost bandwidth and capacity**. **Beyond compute and memory, the key watch is AMD’s rack-scale solution**. As workloads shift from training to inference, raw compute matters less at the margin. **For example, MI355 sits in the same performance tier as NVIDIA’s B200, but AMD’s competitive gap lies in the lack of rack-scale cluster delivery**. For MI450, **AMD plans to tightly pair it with the Helios rack platform, shifting delivery from single-die to rack-scale clusters to directly counter NVIDIA’s Rubin**. **For large CSPs, the need is cluster-scale deployments rather than buying standalone boards.** Rack-scale delivery for MI450 fits that need, and with volume only starting in 2H, AI GPU revenue in 2026 should be back-half weighted. **AMD has signed multi-GW agreements with OpenAI, Meta and Oracle, and the MI450 ramp will directly determine deliveries to these clients.** With a current market cap of $579.2bn, AMD trades at about 33x 2027E post-tax core earnings (assuming a 44% two-year revenue CAGR, 56.7% GPM and 13% tax rate). **Versus AI peers, AMD’s PE is above NVIDIA and TSMC, reflecting the CPU upcycle and expectations for a larger AI share**. **Near term, results hinge on CPUs and MI355 shipments, with tight server CPU supply fueling the CPU upcycle.** Medium to long term, as server CPU demand surges, the market will watch MI450 for new customers, orders, and rack-scale volume delivery. **In this CPU recovery cycle, AMD’s core earnings base should rise with high visibility.** Management lifted the total addressable CPU market to $120bn (from $60bn) and now assumes a 1:1 CPU/GPU ratio, implying CPUs will not be secondary to GPUs in AI, materially raising server CPU expectations. **On AI GPUs, AMD still trails NVIDIA on raw compute, but that does not preclude inference wins, with OpenAI, Meta and Oracle already on board.** **The key watch into 2H is MI450’s rack-scale mass production and deliveries. Successful fulfillment for existing large customers could unlock more external demand, allowing AMD to benefit from a dual-engine CPU+GPU AI cycle.** Below is Dolphin Research’s detailed take on AMD’s results: **I. Overall results: topline beat, guidance stronger** **1.1 Revenue** **AMD delivered Q1 2026 revenue of $10.25bn, up 38% YoY and ahead of ~ $9.9bn consensus.** Growth was led by Data Center and Client. **While AI GPU dipped QoQ, the server CPU upcycle lifted Data Center further. Dolphin Research estimates server CPU-related revenue at ~$3.3bn, up 15% QoQ.** **1.2 Gross profit** ****Gross profit was $5.42bn (+45% YoY), with GPM at 52.8% (+260bps YoY),** driven by higher Data Center mix.** **The company guided **Q2 non-GAAP GPM at ~56%, up ~60bps QoQ**, mainly on server CPU growth. **MI450’s 2H mass production could dilute margins, but long-term GPM is still guided at 55–58%**.** **** ****1.3 Opex**** ****Total opex was $3.65bn, up 40% YoY,** with noticeable increases in both R&D and SG&A.** **Breakdown: **i) R&D was $2.4bn (+39% YoY)**, with continued investment focused on AI. **ii) SG&A was $1.25bn (+41% YoY)**, tracking revenue growth and reflecting higher employee incentives.** **** ****1.4 Profit**** ****The Xilinx acquisition creates sizable amortization headwinds, pressuring reported profit for some time. For underlying performance, ‘core OP’ is more indicative**.** **Core OP = GP − R&D − SG&A. **Ex-acquisition effects, Dolphin Research estimates Q1 core OP at $1.77bn (+57% YoY), mainly on the server CPU recovery**.** **** ****II. Segment detail: server CPU super-cycle; watch MI450 ramp**** **Data Center and Client are the main revenue drivers, together above 80%. Benefiting from MI-series AI GPU shipments and stronger server CPU demand, Data Center’s mix keeps rising.** **** ****2.1 Data Center**** ****Q1 Data Center revenue was $5.78bn (+57% YoY),** beating ~ $5.6bn consensus, **driven mainly by the server CPU upcycle**.** ****Based on company and market views: AI GPU revenue was about $2.4bn (slightly down QoQ), while server CPU and related revenue was about $3.3bn (+15% QoQ).** With MI450 ramping in 2H, AI GPU revenue should be back-half weighted.** **** ****In detail:**** ****a) Data Center CPU:** with combined ‘CPU + GPU’ positioning, AMD’s Data Center CPU share has surpassed 20%. While Intel’s x86 CPUs are collaborating with NVIDIA and Google, that largely provides customers an x86 option.** ****Amid the CPU upcycle and ongoing Zen iterations, DC CPU revenue should see sustained growth.** **Management guided server CPU revenue to grow ~70% YoY in Q2 and expects momentum to continue into 2H, underpinning strong full-year growth**.** ****b) AI GPU:** revenue currently comes mainly from the MI350 ramped in 2H25. **Because MI350 is still delivered at the chip level, not aligned with mainstream rack-scale demand, AI GPU performance is relatively weaker**.** ****Given capex hikes at players like Meta, Dolphin Research expects combined 2026 capex for Meta, Google, Microsoft and Amazon to exceed $700bn (+70% YoY),** supporting high AI chip growth in 2026.** ****In this fast-growing market, AMD’s order wins hinge on product capability.** Beyond the server CPU tailwind, the focus in AI GPUs is MI450’s 2H mass-production progress.** ****For MI450, AMD plans deep integration with the Helios rack platform to enable rack-scale delivery,** directly countering NVIDIA’s Rubin and aligning with CSPs’ mainstream needs.** ****AMD has secured OpenAI, Meta and Oracle, and MI450’s ramp will directly affect deliveries to these customers**.** **** ****2.2 Client**** ****Q1 Client revenue was $2.89bn (+26% YoY),** above the ~$2.7bn Street, driven by share gains vs. Intel in PCs.** **** **Industry data show **global PC shipments of 65.6mn units in Q1 2026 (+4% YoY)**, while **AMD’s Client revenue rose 26% YoY**. **By contrast, Intel’s Client revenue grew only 1.3% YoY**.** **Even with a sluggish PC market, Dolphin Research expects AMD to outgrow the market on product competitiveness.** **** ****2.3 Others**** ****1) Gaming:** Q1 2026 revenue was $720mn (+11% YoY).** **Details: **i) Gaming GPU:** Radeon RX9000 grew YoY. **ii) Semi-custom:** expected to decline YoY per console cycle dynamics, as 2026 is year 7 of the cycle and a transition period. With higher costs for memory and other components, Gaming could see a notable downturn in 2H.** **** ****2) Embedded:** Q1 2026 revenue was $870mn (+6% YoY), driven by test & measurement and emulation, aerospace & defense, communications, and x86 embedded products.** **Customized solutions continue to expand in DC and communications, extending beyond FPGA-centric offerings into adaptive embedded x86 and semi-custom, significantly enlarging the overall TAM.** **** **** **Dolphin Research on AMD** **Feb 4, 2026 call notes ‘[AMD (Trans): Long-term view intact; MI500 to launch in 2027](https://longportapp.cn/en/topics/38422947)’** **Feb 4, 2026 earnings take ‘[Big words, small beats — when will AMD deliver?](https://longportapp.cn/en/topics/38416434)’** **Nov 5, 2025 call notes ‘[AMD (Trans): No new orders disclosed; MI450 focuses on rack-scale](https://longportapp.cn/en/topics/36007625)’** **Nov 5, 2025 earnings take ‘[AMD: Partnering with OpenAI? Not a mere backup](https://longportapp.cn/en/topics/36000003)’** **Aug 6, 2025 call notes ‘[AMD (Trans): Even excluding MI308, next-quarter AI GPU to grow YoY](https://longportapp.cn/en/topics/32645352)’** **Aug 6, 2025 earnings take ‘[AMD: Eating into Intel on CPUs; when can AI GPUs challenge NVIDIA?](https://longportapp.cn/en/topics/32638026)’** **May 7, 2025 call notes ‘[AMD (Trans): AI GPU to deliver double-digit growth for the year](https://longportapp.cn/en/topics/29400172)’** **May 7, 2025 earnings take ‘[AMD: Has Intel on the ropes — turning up the heat on NVIDIA?](https://longportapp.cn/en/topics/29392001)’** **Feb 5, 2025 call notes ‘[AMD (Trans): No sequential growth in DC in 1H25](https://longportapp.cn/en/topics/26979899)’** **Feb 5, 2025 earnings take ‘[AMD: DeepSeek stirs the pot; GPU backup thesis hit by ASICs](https://longportapp.cn/en/topics/26975260)’** ****Risk disclosure & disclaimer:** [Dolphin Research disclaimer and general disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer)** ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md)