AMD Q1 2026 earnings report

Superior Micro Units reported first-quarter earnings Tuesday that topped expectations, whereas the corporate’s income forecast additionally exceeded estimates as demand soars for chips to energy synthetic intelligence workloads.

The inventory jumped about 12% in prolonged buying and selling.

This is how the chipmaker did versus LSEG consensus estimates for the quarter resulted in March:

• EPS: $1.37 vs. $1.29 adjusted anticipated
• Income: $10.25 billion vs. $9.89 billion anticipated

Income climbed 38% from $7.44 billion a 12 months in the past, the corporate mentioned in a launch on Tuesday. Information heart gross sales elevated 57% to $5.8 billion from $3.67 billion in the identical interval a 12 months earlier. Web revenue rose to $1.38 billion, or 84 cents per share within the quarter, from $709 million, or 44 cents per share, a 12 months in the past.

For the second quarter, AMD mentioned it expects about $11.2 billion in income, versus expectations of $10.52 billion, based on LSEG.

AMD CEO Lisa Su mentioned within the assertion that the information heart unit is now the “main driver of our income and earnings development.”

“Trying forward, we anticipate server development to speed up meaningfully as we scale provide to satisfy demand,” Su mentioned.

In ready remarks forward of the earnings name, Su mentioned the corporate has “robust and growing confidence” in its potential to succeed in tens of billions of {dollars} in knowledge heart AI income subsequent 12 months “and to exceed our long-term development goal of better than 80 % within the coming years.”

AMD’s inventory has been on a tear, greater than tripling over the previous 12 months, together with a 66% leap to date in 2026. Whereas the corporate has trailed far behind rival Nvidia available in the market for graphics processing models (GPUs) to energy AI knowledge facilities, buyers have poured into AMD’s inventory extra just lately on optimism that the chance is giant sufficient for a number of gamers.

Not like Nvidia, AMD has lengthy been a number one maker of central processing models, or CPUs, that are having fun with a main renaissance as agentic AI shifts compute wants. AMD shares popped final week when AMD and Intel introduced they will pair up on a brand new instruction set for x86 CPUs. The brand new characteristic, referred to as AI Compute Extensions, goals to extend efficiency and vitality effectivity by boosting compute density by 16 occasions.

The chip trade has confronted a world reminiscence scarcity due to insatiable AI demand in addition to capability constraints for each manufacturing and superior packaging, and provide chain challenges as a result of battle in Iran.

That is all contributing to a frenzy in a variety of semiconductor-related names. Intel simply had its finest month ever in April, with shares greater than doubling as the corporate reported first-quarter outcomes that trounced analysts’ estimates. Shares of reminiscence maker Micron are up greater than 700% up to now 12 months, pushing the corporate’s market cap previous $700 billion.

Along with CPUs and GPUs, AMD can also be anticipated to ship its first full rack-scale system for AI knowledge facilities, Helios, later this 12 months. It is meant to rival Nvidia’s Grace Blackwell and Vera Rubin methods that promote for upwards of $3 million.

Each OpenAI and Meta have already signed up for shipments of Helios, marking AMD’s system as a viable second choice for AI giants and hyperscalers scrambling to safe sufficient compute.

Meta mentioned in February {that a} multiyear take care of AMD includes deploying as much as 6 gigawatts of the corporate’s GPUs for AI knowledge facilities and consists of use of AI-optimized CPUs.

Su mentioned in her ready remarks that shipments are set to start within the second half of the 12 months.

“Along with our beforehand introduced OpenAI partnership, these engagements place AMD as a core accomplice to the world’s largest AI infrastructure builders, with deep co-engineering relationships and multi-year visibility into large-scale deployments,” Su mentioned.

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