Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) reported first quarter results that exceeded Wall Street expectations, supported by strong growth in its data center segment, sending its shares higher after Tuesday's closing bell.
The semiconductor company reported revenue of $10.3 billion, up 38% year-over-year and handily beating estimates of $9.92 billion.
Data Center revenue was up 57% year-over-year at $5.8 billion.
Adjusted earnings per share of $1.37 also exceeded estimates of about $1.30. This marked a 43% increase from the year-ago quarter.
The increase was driven by strong demand for AMD EPYC processors and the continued ramp of AMD Instinct GPU shipments.
Client and Gaming segment revenue totaled $3.6 billion, up 23% from a year earlier. Within that, Client revenue rose 26% year-over-year to $2.9 billion, supported by demand for Ryzen processors and ongoing market share gains.
Gaming revenue increased 11% to $720 million, reflecting solid demand for Radeon GPUs, partially offset by lower semi-custom revenue.
The Embedded segment generated $873 million in revenue, up 6% year-over-year, as demand improved across several end markets.
“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,” AMD CEO Dr. Lisa Su said in the earnings release.
“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
For the second quarter of 2026, the company expects revenue of approximately $11.2 billion, plus or minus $300 million, implying year-over-year growth of about 46% and a sequential increase of roughly 9%. Non-GAAP gross margin is expected to be approximately 56%.
Shares of AMD added 6% afterhours shortly after the release of its Q1 report.