TEMPO.CO, Jakarta - Advanced Micro Devices (AMD) reported stronger-than-expected first-quarter earnings, lifting investor confidence as demand for artificial intelligence (AI) infrastructure continues to surge.
The chipmaker posted earnings per share (EPS) of US$1.37 on revenue of US$10.25 billion, exceeding analysts’ expectations of US$1.28 EPS and US$9.89 billion in revenue. The results also marked a significant increase from the same period last year, when AMD recorded EPS of US$0.96 and revenue of US$7.43 billion.
Shares of AMD rose sharply following the announcement, gaining more than 6 percent in initial trading.
As reported by Yahoo Finance, the company also delivered a stronger-than-expected outlook for the second quarter. AMD projected revenue between US$10.9 billion and US$11.5 billion, above Wall Street estimates of US$10.52 billion.
The company’s data center segment remained a key growth driver, generating US$5.8 billion in revenue, up 57 percent year-on-year and surpassing expectations. This reflects growing demand for processors and computing infrastructure amid the rapid expansion of AI technologies.
AMD CEO Lisa Su expressed confidence in the company’s long-term growth, particularly in AI-related markets.
“We have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027,” she said during the company’s earnings call.
According to Barron's, AMD also expects the total addressable market for AI-related processors to expand rapidly, potentially reaching US$120 billion by 2030, driven by the rise of AI agents and data-intensive applications.
The surge in AI adoption has increased demand for both central processing units (CPUs) and graphics processing units (GPUs), which are essential for running and training AI models. Unlike its competitor Intel, AMD offers both CPUs and high-performance GPUs, giving it a strategic advantage in capturing a broader share of the AI market.
The company is also preparing to launch its first rack-scale system, Helios, which integrates CPUs and GPUs into a unified server platform, positioning AMD to compete more directly with systems developed by Nvidia.
Beyond data centers, AMD’s other business segments also showed solid performance. Its client division generated US$2.9 billion in revenue, while its gaming segment brought in US$720 million, both exceeding market expectations.
Overall, AMD’s non-data center businesses—including PCs, gaming, automotive, and industrial markets—grew 19 percent to US$4.5 billion.
The company’s growth comes as major technology firms seek to diversify supply chains beyond Nvidia, which has dominated the AI chip market. AMD has secured major partnerships with companies such as Meta Platforms and OpenAI, with shipments expected to begin in the second half of the year.
However, challenges remain. The global semiconductor market continues to face headwinds, including a projected 11.3 percent decline in PC shipments in 2026 due to memory shortages, according to industry data.
Despite these concerns, AMD’s strong earnings and optimistic outlook underscore its growing role in the global AI race, as demand for advanced computing power continues to accelerate.
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