Key Points
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Advanced Micro Devices (NASDAQ: AMD) reported first-quarter revenue of $10.3 billion, a 38% year-over-year increase, exceeding its forecast of $9.8 billion.
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The data center segment revenue surged 57% to $5.8 billion, now accounting for over half of total revenue.
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Free cash flow more than tripled to $2.6 billion, with an adjusted earnings per share increase of 43% to $1.37.
Advanced Micro Devices (AMD) experienced significant growth in its first quarter of 2026, revealing a revenue increase of 38% year over year, totalling $10.3 billion, driven by a 57% rise in data center revenue. This growth trajectory is supported by strong demand for AI infrastructure and strategic partnerships, including multi-year agreements with Meta Platforms and OpenAI.
The company’s optimistic guidance for the second quarter targets around $11.2 billion in revenue, implicating a further 46% year-over-year growth. With free cash flow skyrocketing to a record $2.6 billion, and adjusted earnings per share rising to $1.37, AMD is well-positioned in the AI chip market, despite high valuation concerns currently placing its price-to-earnings ratio around 150.
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