AMD Jumps 115% YTD as Data Center Revenue Hits $5.8 Billion
Updated
Updated · The Motley Fool · May 13
AMD Jumps 115% YTD as Data Center Revenue Hits $5.8 Billion
3 articles · Updated · The Motley Fool · May 13
AMD has climbed 115% this year to fresh May highs after first-quarter results showed AI-driven chip demand broadening beyond GPUs and into its CPU-heavy portfolio.
Revenue rose 38% to $10.3 billion, led by a 57% jump in data center sales to a record $5.8 billion, while AMD forecast server CPU revenue growth of 70% in the second quarter.
Lisa Su also raised AMD's long-term CPU market outlook to more than 35% annual growth through 2030 from 18%, framing the shift as a structural change in the business.
2026 catalysts include custom MI450 GPU shipments for Meta and OpenAI and a second-half launch of EPYC Venice CPUs with Helios racks, even as higher memory prices may soften PC demand later this year.
AMD's broader case rests on market-share gains across cloud and enterprise customers and a valuation bulls argue remains reasonable at 35 times 2027 earnings, with a PEG ratio of 0.69.
Can AMD overcome industry-wide shortages to deliver on its multi-gigawatt AI chip promises to Meta and OpenAI?
Is AMD's rise a tech victory, or a strategic move by hyperscalers to break Nvidia's near-monopoly?
As AMD and Nvidia fuel a data center boom, who will solve the looming electricity crisis needed to power this AI revolution?
AMD Q1 2026: 38% Revenue Growth and 57% Data Center Surge Drive Stock to All-Time Highs Amid AI Infrastructure Race
Overview
In Q1 2026, AMD delivered strong financial results that marked a new era of growth and highlighted its expanding influence in the semiconductor industry. The company’s earnings report, released in early May, sparked a positive reaction in its stock price, reflecting investor confidence in AMD’s strategic direction and market execution. Revenue growth was led by the Data Center segment, which played a critical role in powering advanced AI models within US data centers. This performance underscores AMD’s central position in the evolving AI infrastructure landscape and signals strong momentum for future growth.