Advanced Micro Devices (AMD) reported significant growth in its Data Center segment, with revenues reaching a record $5.8 billion in Q1 2026, up 57% year-over-year. This surge was largely driven by demand for EPYC server processors and Instinct AI accelerators. AMD anticipates the total addressable market for server CPUs will grow over 35% annually, exceeding $120 billion by 2030, bolstered by its expanding EPYC portfolio.
AMD is also ramping up its next-generation AI infrastructure platform, expecting billions in annual revenues from its Data Center AI business by 2027. For Q2 2026, AMD projects revenues to be approximately $11.2 billion, with earnings estimated at $1.60 per share, reflecting a year-over-year growth of 233.3%. However, competition remains fierce, particularly from NVIDIA—whose Data Center revenues soared 92% year-over-year to $75.2 billion—and Broadcom, which achieved record AI semiconductor revenues of $10.8 billion, up 143% year-over-year.
AMD shares have increased 129% year-to-date, outpacing the broader tech sector’s rise of 16.2%. Despite this growth, AMD’s valuation appears high, with a forward price/sales ratio of 13.78 compared to the sector’s 6.59. The company currently holds a Zacks Rank of 3.
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