SANTA CLARA, Calif., May 4, 2026

Advanced Micro Devices (AMD) reported stronger-than-expected first-quarter earnings, driven by a 57% year-over-year surge in data center revenue to $5.8 billion.

The chipmaker posted revenue of $10.25 billion for the quarter, surpassing Wall Street’s projection of $9.89 billion. Earnings per share (EPS) came in at $1.37, beating the $1.28 analysts had anticipated. AMD’s stock jumped more than 18% in premarket trading Wednesday following the announcement.

Strong Performance Across Segments

AMD’s data center business led the charge, with revenue climbing to $5.8 billion, reflecting heightened demand for processors powering artificial intelligence applications. The company also outperformed expectations in its Client segment, which includes PC processors, generating $2.9 billion in revenue compared to the projected $2.73 billion.

The gaming division reported $720 million in sales, exceeding the $668 million forecast by analysts. Despite these gains, the broader tech industry faces headwinds from a global memory shortage, with PC shipments expected to drop 11.3% in 2026, according to industry projections. Tablet shipments could decline by 7.6% over the same period.

Apple CEO Tim Cook recently warned that "increased memory prices will likely hit that company's margins in the coming quarters," underscoring broader supply chain challenges.

Competition and Future Outlook

AMD’s results follow a similarly strong earnings report from rival Intel, which on April 23 posted better-than-expected figures, sending its stock soaring 24%. Both companies are benefiting from robust demand for data center hardware as AI adoption accelerates.

Looking ahead, AMD expects second-quarter revenue between $10.9 billion and $11.5 billion, above Wall Street’s $10.52 billion estimate. The company is also preparing to launch Helios, its first rack-scale system, which integrates AMD’s GPUs and CPUs into a unified server rack.

The launch positions AMD to compete more aggressively in the high-performance computing market, where efficiency and scalability are critical for AI workloads.