AMD beats Q1 earnings estimates with 38% revenue growth led by data center demand

Advanced Micro Devices (AMD) reported Q1 2026 revenue of $10.3 billion, up 38% year-over-year, surpassing analyst estimates of $9.92 billion. The strong performance was driven by a 57% increase in Data Center revenue to $5.8 billion, fueled by demand for AMD EPYC processors and AMD Instinct GPUs. Client and Gaming segments also grew, with Client revenue up 26% and Gaming revenue up 11%. CEO Lisa Su highlighted accelerating AI infrastructure demand as a key growth driver. AMD expects Q2 revenue around $11.2 billion, projecting continued strong growth in server demand and a gross margin near 56%. Shares rose 6% in after-hours trading following the report.