AMD shares jumped about 17% in pre-market trading on Wednesday after CEO Lisa Su emphasized the growing importance of the firm\u2019s server and data center operations. Su stated on the post-earnings call that data centers are now AMD\u2019s primary revenue driver and projected server revenue to grow more than 70% year-on-year in the current quarter.<\/p>\n
For Q1 2026, AMD reported adjusted earnings of $1.37 per share on revenue of $10.25 billion. Both metrics topped analyst expectations of $1.27 per share and $9.85 billion in revenue. The data center segment generated $5.78 billion in revenue, up 57% year-on-year, supported by demand for EPYC processors and Instinct GPUs for cloud and AI workloads.<\/p>\n
The client and gaming segment delivered $3.61 billion in revenue, a 23% year-on-year increase, driven by Ryzen processors and Radeon graphics cards. However, AMD cautioned about potential future softness in this area due to rising memory and component costs.<\/p>\n
For Q2 2026, AMD guided for revenue of about $11.2 billion, plus or minus $300 million, above analyst expectations of $10.50 billion. The guidance implies a 50.6% year-on-year increase and a 9.1% sequential rise. Su also pointed to a broader shift in AI-related demand, noting that processes such as AI inference and agentic AI are boosting the market for CPU server chips, expanding the focus beyond GPUs.<\/p>\n
AMD outlined a notably stronger outlook for the CPU total addressable market, forecasting 35% annual growth to just over $120 billion by 2030. This compares with the company\u2019s prior forecast of 18% growth given in November. Jefferies identified this upgraded forecast as a key factor behind the stock\u2019s recent rally.<\/p>\n
The company also highlighted its partnership with Meta to deploy additional AI processing capacity, underpinned by a $60 billion chip supply agreement, with shipments set to begin in the second half of the year. AMD is widely viewed as the main competitor to Nvidia in high-end AI GPUs. While it trails Nvidia in market share, AMD\u2019s shares are up 65.9% year-to-date, versus a 5.4% gain for Nvidia and 6.1% for the S&P 500.<\/p>\n
Analyst reactions have been constructive. Bernstein\u2019s Stacy Rasgon upgraded AMD to Outperform with a $525 price target, noting improving fundamentals, while Goldman Sachs also raised its recommendation on the stock.<\/p>\n
What were AMD\u2019s Q1 2026 earnings and revenue?<\/strong> What is AMD\u2019s revenue guidance for Q2 2026?<\/strong> How is AMD\u2019s data center business performing?<\/strong> How has AMD\u2019s stock performed compared with Nvidia and the S&P 500?<\/strong>
AMD reported adjusted earnings of $1.37 per share on revenue of $10.25 billion, beating consensus estimates of $1.27 per share and $9.85 billion in revenue.<\/p>\n
AMD expects Q2 2026 revenue of about $11.2 billion, plus or minus $300 million, implying 50.6% year-on-year and 9.1% quarter-on-quarter growth.<\/p>\n
AMD\u2019s data center segment generated $5.78 billion in Q1 2026 revenue, up 57% year-on-year, and the company expects server revenue to rise more than 70% year-on-year in the current quarter.<\/p>\n
Year-to-date, AMD shares are up 65.9%, compared with gains of 5.4% for Nvidia and 6.1% for the S&P 500.<\/p>\n