AMD Reports Strong Q1 Earnings Driven by AI Demand
Advanced Micro Devices (NASDAQ: AMD) reported significant first-quarter earnings on May 6, 2026, showcasing a revenue of $10.25 billion, exceeding estimates of $9.89 billion with a year-over-year growth of 38%. The company’s data center division, a key component of its performance, achieved revenue of $5.8 billion, up 57% from the previous year. AMD’s adjusted earnings per share (EPS) hit $1.37, surpassing estimates by $0.08.
The strong demand for high-performance CPUs and graphics cards, spurred by the rise of agentic artificial intelligence, has led Wall Street analysts to significantly raise their price targets. Barclays increased its target by $200 to $500 per share, and Baird raised theirs by $300 to $625. Following the earnings report, AMD’s stock surged over 17%, trading around $417 per share.
For the second quarter, AMD projects $11.2 billion in revenue, nearly $1 billion more than Q1. Analysts predict that revenue from AMD’s data center division could grow 70% year over year in this period, reflecting the expanding market for CPUs in AI applications.
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