<div id="readability-page-1"><div id="ArticleBody-InlineImage-108158703"><div><div><p>AMD CEO Lisa Su unveils the AMD vision for Advancing Al.</p><p>Courtesy: AMD</p></div></div></div><div><p>Advanced Micro Devices reported first-quarter earnings Tuesday that topped expectations, while the company's revenue forecast also exceeded estimates as demand soars for chips to power artificial intelligence workloads.</p><p>Here's how the chipmaker did versus LSEG consensus estimates for the quarter ended in March:</p><ul><li><strong>EPS: </strong>$1.37 vs. $1.29 adjusted expected</li><li><strong>Revenue:</strong> $10.25 billion vs. $9.89 billion expected</li></ul><p>Revenue jumped 38% from $7.44 billion a year ago, the company said in a release on Tuesday. Data center sales climbed 57% to $5.8 billion from $3.67 billion in the same period a year earlier. </p><p>For the second quarter, AMD said it expects about $11.2 billion in revenue, versus expectations of $10.52 billion, according to LSEG.</p><p>AMD's stock has been on a tear, more than tripling over the past year, including a 66% jump so far in 2026. While the company has trailed far behind rival <span id="RegularArticle-QuoteInBody-3">Nvidia<span><span id="-WatchlistDropdown"></span></span></span> in the market for graphics processing units (GPUs) to power AI data centers, investors have poured into AMD's stock more recently on optimism that the opportunity is large enough for multiple players. </p><p>Unlike Nvidia, AMD has long been a leading maker of central processing units, or CPUs, which are enjoying a major renaissance as agentic AI shifts compute needs. AMD shares popped last week when AMD and Intel announced they'll pair up on a new instruction set for x86 CPUs. The new feature, called AI Compute Extensions, aims to increase performance and energy efficiency by boosting compute density by 16 times.</p><p>The chip industry has faced a global memory shortage because of insatiable AI demand as well as capacity constraints for both manufacturing and advanced packaging, and supply chain challenges due to the war in Iran.</p><p>That's all contributing to a frenzy in a number of semiconductor-related names. Intel just had its best month ever in April, with shares more than doubling as the company reported first-quarter results that trounced analysts' estimates. Shares of memory maker <span id="RegularArticle-QuoteInBody-8">Micron<span><span id="-WatchlistDropdown"></span></span></span> are up more than 700% in the past year, pushing the company's market cap past $700 billion. </p><p>In addition to CPUs and GPUs, AMD is also expected to ship its first full rack-scale system for AI data centers, Helios, later this year. It's meant to rival Nvidia's Grace Blackwell and Vera Rubin systems that sell for upwards of $3 million.</p><p>Both OpenAI and <span id="RegularArticle-QuoteInBody-12">Meta<span><span id="-WatchlistDropdown"></span></span></span> have already signed up for shipments of Helios, marking AMD's system as a viable second option for AI giants and hyperscalers scrambling to secure enough compute.</p><p><strong>WATCH</strong>: How advanced packaging could be the next big bottlneck for AI</p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

AMD's Q1 revenue reached $10.3 billion, a 38% year-over-year increase, with its data center business surging 57% to $5.8 billion. AI inference demand fueled demand for server chips. Is AMD firmly established as the second-largest player in AI chips? Feel free to share your thoughts below!

<p>AMD's Q1 revenue reached $10.3 billion, a 38% year-over-year increase, with its data center business surging 57% to $5.8 billion. AI inference demand fueled demand for server chips. Is AMD firmly established as the second-largest player in AI chips? Feel free to share your thoughts below!</p>

AMD Beats Estimates, Data Center Revenue Soars 57%

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<p>AMD reported first-quarter earnings that exceeded expectations, with revenue rising 38% year-over-year to $10.25 billion, driven by a 57% increase in data center sales. The company forecasts $11.2 billion in revenue for the second quarter. AMD's stock has surged over 66% in 2026, fueled by optimism in the AI sector. The chipmaker is also set to launch its Helios AI data center system, competing with Nvidia's offerings. Despite challenges in the semiconductor industry, AMD's advancements in CPUs and partnerships are positioning it as a strong player in the AI market.</p>

- Advanced Micro Devices (AMD) reported first-quarter earnings above expectations, with revenue reaching $10.25 billion, a 38% increase year-over-year.  
- The demand for chips powering artificial intelligence workloads has driven AMD's stock value up significantly, with revenue forecasts for the second quarter also exceeding estimates.  
- Despite facing global memory shortages and supply chain challenges, AMD is set to ship its first full rack-scale AI system, Helios, later this year, which has already attracted interest from major companies like OpenAI and Meta.

AMD tops estimates for first quarter as data center revenue jumps 57%