AMD’s stock soared 15% on May 5, 2026, after the company reported strong first quarter financial results. The surge was driven by significant growth in its data center segment and increasing demand for AI infrastructure.
AMD reported first quarter revenue of $10.3 billion, a 38% increase year-over-year. The gross margin for the quarter stood at 53%. Operating income reached $1.5 billion, reflecting an impressive 83% year-over-year increase. Net income also saw a substantial rise to $1.4 billion, marking a 95% increase compared to the same period last year.
Key financial highlights:
- Revenue: $10.3 billion
- Gross margin: 53%
- Operating income: $1.5 billion
- Net income: $1.4 billion
- Diluted earnings per share: $0.84
Data Center segment revenue was particularly strong at $5.8 billion, up 57% year-over-year. Client and Gaming segment revenue also grew, reaching $3.6 billion, an increase of 23%. Analysts had expected AMD to report revenue of approximately $9.91 billion, but the company exceeded these estimates significantly.
Dr. Lisa Su, AMD’s CEO, stated, “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.” Jean Hu, AMD’s CFO, added that these results highlight continued momentum across the business.
Looking ahead, AMD expects second quarter revenue to be approximately $11.2 billion, plus or minus $300 million. The company’s operating margin expanded by 300 basis points year-over-year to 14%. This positive trend indicates strong potential for continued growth in the upcoming quarters.
Overall, AMD’s stock gained 63% over the past month as sentiment around artificial intelligence recovered. The outlook for the second quarter also outpaced expectations set by analysts.
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