SANTA CLARA, California, May 5, 2026, 14:02 (PDT)
- AMD guided second-quarter revenue to about $11.2 billion, above analyst estimates.
- Data-center revenue rose 57% in the first quarter as AI infrastructure spending held up.
- The stock gained in late trading, but Nvidia and Intel remain hard tests.
Advanced Micro Devices forecast second-quarter revenue above Wall Street expectations on Tuesday, helped by demand for data-center chips used in artificial intelligence systems, and its shares rose 5.5% in extended trading. The company expects revenue of about $11.2 billion, plus or minus $300 million, versus LSEG estimates of $10.52 billion.
The guide matters now because investors are still testing whether AI infrastructure spending is widening beyond Nvidia, the dominant supplier of AI chips. Bloomberg reported that AMD’s outlook topped an average analyst estimate of about $10.5 billion, showing the company is getting a larger share of the buildout.
The first-quarter beat was strong enough to shift attention to the next ramp. AI inference — the running of trained AI models for users — is creating demand not just for graphics processors, but also for central processing units and other data-center parts where AMD competes more directly.
AMD posted first-quarter revenue of $10.253 billion, up 38% from a year earlier. Net income nearly doubled to $1.383 billion, or 84 cents a share, while adjusted earnings, which exclude items such as stock-based pay and acquisition-related costs, came in at $1.37 a share.
“We delivered an outstanding first quarter,” Chief Executive Lisa Su said, citing “accelerating demand for AI infrastructure.” She said Data Center had become “the primary driver” of AMD’s revenue and earnings growth, while CFO Jean Hu pointed to “record quarterly free cash flow.” Advanced Micro Devices, Inc.
Data Center revenue rose 57% to $5.775 billion, driven by EPYC server processors and the continued ramp of Instinct GPUs, AMD’s graphics chips for AI and high-performance computing. Client revenue reached $2.885 billion, gaming revenue was $720 million and embedded revenue was $873 million.
The segment details were mixed but mostly ahead. MarketScreener, citing MT Newswires and FactSet, showed gaming revenue above the $641.4 million consensus, while embedded revenue was just below the $878.9 million estimate; the same page listed Data Center revenue ahead of FactSet consensus of $5.64 billion and client revenue above $2.72 billion.
The setup into the print was already demanding. Cantor Fitzgerald analyst C.J. Muse had expected a “strong beat” and better-than-expected second-quarter guidance, helped by tight CPU supply and Intel’s recent signs of better demand, MarketWatch reported before the earnings release. MarketWatch
The risk is that AMD still has little room to slip. Nvidia remains the main AI accelerator supplier, Intel is pushing to regain ground in server and PC chips, and Reuters reported that tight capacity at TSMC, along with shortages and rising prices for memory chips, could weigh on some parts of AMD’s business.
For now, AMD is telling investors the AI order book is still expanding. The company said second-quarter adjusted gross margin should be about 56%, and Su said AMD expects server growth to accelerate as it scales supply to meet demand.
