AMD reported first-quarter earnings that beat expectations, and its revenue forecast also topped estimates, thanks to growing demand for chips supporting artificial intelligence workloads.
In Q1, AMD’s revenue totaled $10.3 billion a 38% rise from $7.44 billion a year ago, with a gross margin of 53%. Operating income reached $1.5 billion, net income was $1.4 billion, and diluted earnings per share were $0.84.
Dr. Lisa Su, AMD chair and CEO, told investors, “We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth.”
“We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators. 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, AMD EVP, CFO and treasurer, commented, “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 forecasts approximately $11.2 billion in revenue.
AMD stock surged 20% in premarket trading on Wednesday following the announcement.
By CEO NA Editorial Staff
