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06 May 2026, 09:30
AMD Surges 17% in Premarket as AI Demand Drives Record Quarterly Results
May 6, 2026 · Earnings Report
Advanced Micro Devices delivered a blowout first quarter yesterday, beating expectations across all major financial metrics and sending shares 17% higher in premarket trading. The results were fueled by explosive growth in its Data Center business, which now accounts for more than half of total company revenue, as hyperscalers and enterprise customers raced to build out AI infrastructure.
First quarter revenue came in at $10.3 billion, up 38% year-over-year and roughly flat compared to the prior quarter. On a non-GAAP basis, the company reported gross margin of 55%, operating income of $2.5 billion — up 43% from a year ago — and diluted earnings per share of $1.37, compared to $0.96 in Q1 2025.
"We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth," said Dr. Lisa Su, AMD chair and CEO. "We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators."
The Data Center segment was the clear standout, with revenue climbing 57% year-over-year to $5.8 billion on strong EPYC CPU demand and a continued ramp of Instinct GPU shipments. A landmark deal with Meta — involving up to 6 gigawatts of AMD Instinct GPUs including a custom MI450-based chip — underscored the company's deepening relationships with the world's largest AI spenders. AWS, Google Cloud, Microsoft Azure, and Tencent also announced new or expanded EPYC-powered cloud instances during the quarter.
On the consumer side, the Client and Gaming segment rose 23% to $3.6 billion, with the client business alone up 26% as Ryzen processors continued to gain market share. Gaming revenue grew 11% to $720 million, driven by Radeon GPU demand, though partly offset by softer semi-custom revenue. The Embedded segment posted $873 million in revenue, up 6% year-over-year, as demand strengthened across several end markets.
CFO Jean Hu noted that the quarter represented record free cash flow generation. "First quarter results reflect strong performance across all key financial metrics, with accelerating revenue growth, earnings expansion and record quarterly free cash flow," she said. "These results highlight continued momentum and execution across the business, demonstrating the leverage in our operating model as we invest for accelerated growth while expanding profitability."
Looking ahead, AMD guided second quarter revenue to approximately $11.2 billion, plus or minus $300 million. The midpoint implies year-over-year growth of roughly 46% and a sequential increase of approximately 9%. Non-GAAP gross margin for Q2 is expected to reach approximately 56%. Su noted that customer forecasts for the upcoming MI450 Series and Helios rack-scale platform are already exceeding the company's own initial expectations, with a growing pipeline of large-scale deployments providing greater visibility into AMD's growth trajectory through the rest of 2026.
May 6, 2026 · Earnings Report
Advanced Micro Devices delivered a blowout first quarter yesterday, beating expectations across all major financial metrics and sending shares 17% higher in premarket trading. The results were fueled by explosive growth in its Data Center business, which now accounts for more than half of total company revenue, as hyperscalers and enterprise customers raced to build out AI infrastructure.
First quarter revenue came in at $10.3 billion, up 38% year-over-year and roughly flat compared to the prior quarter. On a non-GAAP basis, the company reported gross margin of 55%, operating income of $2.5 billion — up 43% from a year ago — and diluted earnings per share of $1.37, compared to $0.96 in Q1 2025.
"We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth," said Dr. Lisa Su, AMD chair and CEO. "We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators."
The Data Center segment was the clear standout, with revenue climbing 57% year-over-year to $5.8 billion on strong EPYC CPU demand and a continued ramp of Instinct GPU shipments. A landmark deal with Meta — involving up to 6 gigawatts of AMD Instinct GPUs including a custom MI450-based chip — underscored the company's deepening relationships with the world's largest AI spenders. AWS, Google Cloud, Microsoft Azure, and Tencent also announced new or expanded EPYC-powered cloud instances during the quarter.
On the consumer side, the Client and Gaming segment rose 23% to $3.6 billion, with the client business alone up 26% as Ryzen processors continued to gain market share. Gaming revenue grew 11% to $720 million, driven by Radeon GPU demand, though partly offset by softer semi-custom revenue. The Embedded segment posted $873 million in revenue, up 6% year-over-year, as demand strengthened across several end markets.
CFO Jean Hu noted that the quarter represented record free cash flow generation. "First quarter results reflect strong performance across all key financial metrics, with accelerating revenue growth, earnings expansion and record quarterly free cash flow," she said. "These results highlight continued momentum and execution across the business, demonstrating the leverage in our operating model as we invest for accelerated growth while expanding profitability."
Looking ahead, AMD guided second quarter revenue to approximately $11.2 billion, plus or minus $300 million. The midpoint implies year-over-year growth of roughly 46% and a sequential increase of approximately 9%. Non-GAAP gross margin for Q2 is expected to reach approximately 56%. Su noted that customer forecasts for the upcoming MI450 Series and Helios rack-scale platform are already exceeding the company's own initial expectations, with a growing pipeline of large-scale deployments providing greater visibility into AMD's growth trajectory through the rest of 2026.