Growing demand for artificial intelligence infrastructure continues to fuel the first quarter (Q1) growth for Advanced Micro Devices (AMD), an American semiconductor company. The company reported a sharp rise in revenue, which touched a whopping US$ 10.3 billion, as cloud and enterprise customers increased spending on data center chips and accelerators.
In a press release, the chipmaker posted its Q1 financial results net income of US$ 1.4 billion, or US$ 0.84 per diluted share that ended on March 31. On an adjusted basis, earnings were US$ 1.37 per share while the gross margin was 53 percent, or 55 percent on a non-GAAP basis. AMD data center revenue rose 57 percent year over year (YoY) to US$ 5.8 billion, making it the company’s largest growth driver. The increase was fuelled by demand for EPYC server processors and higher shipments of Instinct AI GPUs.
Dr. Lisa Su, chair and CEO, AMD, said, “We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with the Data Center now the primary driver of our revenue and earnings growth, AI drive increasing demand for high-performance CPUs and accelerators.
Dr Su continues, “Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand. Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”
Jean Hu, executive vice president, CFO and treasurer, AMD, said, “First quarter results reflect strong performance across all key financial metrics, with accelerating revenue growth, earnings expansion and record quarterly free cash flow, 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.”
For the second quarter, AMD forecast revenue of about US$ 11.2 billion, plus or minus US$ 300 million. The midpoint of the guidance implies annual growth of about 46 percent and sequential growth of roughly 9 percent. The company expects non-GAAP gross margin of about 56 percent.
Following the results announcement, AMD shares surged 16 percent on Wednesday, extending its stock gain by 66 percent in 2026 according to a CNBC report, which also pointed out that the stocks had tripled last year alone.
Meanwhile, Investing.com, quoted a note by Stacy Rasgon, Analyst, Bernstein, as saying, “While many stocks have been climbing strictly on vibes lately the company deserves significant credit for a fundamental story that increasingly is looking real.”
The results underscore how AMD is benefiting from the ongoing surge in AI infrastructure spending, as demand for data center processors and accelerators increasingly offsets slower growth in traditional chip markets. With server revenue expected to climb further in the coming quarters and customer interest in its next-generation AI products building, the company is positioning itself to deepen its competition in the rapidly expanding AI semiconductor market.