TLDR
- Advanced Micro Devices delivered Q1 EPS of $1.37, surpassing the $1.29 consensus, with revenue reaching $10.25B versus $9.89B anticipated
- Data center segment revenue climbed 57% annually to $5.8B, exceeding the $5.6B analyst projection
- Second quarter revenue outlook of $10.9B–$11.5B significantly topped Wall Street’s $10.52B estimate
- Lisa Su, AMD’s CEO, projected high confidence in achieving “tens of billions” in AI-focused data center revenue by 2027
- Shares of AMD climbed over 12% during extended trading hours, building on a 60% year-to-date rally
Advanced Micro Devices delivered a comprehensive quarterly beat on Tuesday, triggering a 12%+ surge in after-hours trading activity.
The company reported earnings per share of $1.37, surpassing analyst expectations of $1.29. Total revenue reached $10.25 billion, comfortably ahead of the $9.89 billion consensus target. These figures mark substantial improvement from the prior-year quarter, when AMD reported EPS of $0.96 on $7.43 billion in revenue.
Shares had already climbed approximately 60% during 2025 prior to Tuesday’s announcement. In after-hours trading, the stock extended gains to $411.94 — representing a $56.68 increase from the regular session closing price of $355.26.
Advanced Micro Devices, Inc., AMD
The data center division emerged as the clear winner. This segment generated $5.8 billion in revenue, representing a 57% year-over-year increase and narrowly beating the $5.6 billion analyst estimate. Segment operating margin reached 28%, falling just short of Wall Street’s projections.
The forward guidance captured the most attention. AMD projected second quarter revenue ranging from $10.9 billion to $11.5 billion — substantially exceeding the $10.52 billion consensus forecast. Adjusted gross profit expectations similarly surpassed analyst models.
The single area of concern: projected expenses came in marginally above what analysts had modeled.
Lisa Su On AI Data Centers
During the earnings conference call, CEO Lisa Su delivered a confident message. “We have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027,” she stated, noting that AMD anticipates surpassing its long-term growth objective of exceeding 80% in upcoming years.
Su also emphasized the expanding importance of CPUs within AI infrastructure. She projected that the total addressable market for AMD’s CPU portfolio could expand 35% per year, potentially reaching $120 billion by 2030.
“As AI adoption scales, you need more inferencing and more agents. They all require CPUs for orchestration and data processing,” Su explained.
The company is gearing up to introduce Helios, its inaugural rack-scale platform, which will integrate GPUs and CPUs into a unified server rack configuration — a design philosophy comparable to Nvidia’s NVL72 offering.
AI Contracts and Key Tests Ahead
AMD has secured major agreements with Meta Platforms and OpenAI, granting warrants for up to 320 million AMD shares collectively, with vesting contingent on delivery milestones and performance metrics. Shipments under these contracts are anticipated to commence during the latter half of 2026 — representing a critical milestone for the company’s scaling capabilities.
Beyond the data center business, AMD’s remaining divisions delivered solid performance. Client segment revenue reached $2.9 billion compared to the $2.73 billion estimate. Gaming division revenue totaled $720 million, surpassing the $668 million projection. Collectively, non-data-center revenue grew 19% to $4.5 billion.
Intel, which released its quarterly results on April 23, similarly exceeded forecasts and experienced a 24% stock surge driven by data center business strength. AMD now benefits from similar momentum entering the second quarter.
According to IDC projections, worldwide PC shipments are forecast to decline 11.3% in 2026 due to memory supply constraints. Apple’s Tim Cook referenced comparable margin challenges from escalating memory costs during his company’s recent earnings discussion.
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