AMD stock rises 15% after strong earnings report

On May 5, 2026, AMD’s stock surged 15% in extended trading after the company reported first quarter revenues of $10.3 billion, driven largely by demand for AI infrastructure and data center growth.

AMD’s data center unit is now the primary driver of revenue and earnings growth. The company reported a gross margin of 53% and an operating income of $1.5 billion for the first quarter. Net income reached $1.4 billion, translating to diluted earnings per share of $0.84.

Key financial highlights:

• First quarter revenue: $10.3 billion
• Gross margin: 53%
• Operating income: $1.5 billion
• Net income: $1.4 billion
• Diluted earnings per share: $0.84
• Data Center segment revenue: $5.8 billion (up 57% year-over-year)

Dr. Lisa Su, AMD’s CEO, expressed enthusiasm about the results, stating, “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.” This sentiment reflects a broader trend as companies increasingly invest in AI capabilities.

Jean Hu, AMD’s CFO, added that these results demonstrate the company’s momentum and operational leverage as they invest for accelerated growth while expanding profitability. The Client and Gaming segment also saw revenue climb to $3.6 billion, marking a 23% increase year-over-year.

Looking ahead:

For Q2 2026, AMD expects revenue to be approximately $11.2 billion. and The company anticipates continued server growth as supply scales to meet demand.

This robust performance positions AMD well in a competitive market dominated by advancements in technology like the AMD EPYC processors and AMD Radeon GPUs. As industry observers note this upward trajectory, AMD remains focused on harnessing the power of AI infrastructure to further enhance its offerings.