AMD saw a 57 percent year-on-year (YoY) revenue increase for its data center segment during Q1 2026, with income reaching $5.8 billion.

The growth was primarily driven by strong demand for the company’s Epyc CPUs and Instinct GPUs as AI compute needs continue to ramp up, the company said.

However, across all segments, reported revenue was $10.25bn, up 38 percent YoY but flat quarter-on-quarter (QoQ), with net income totaling $1.4bn, up 95 percent YoY but down eight percent QoQ.

Looking ahead to Q2, the chip designer has forecast revenue of $11.2bn, plus or minus $300 million.

Following the publication of the results, AMD’s stock price was up more than 14 percent in after-hours trading.

Speaking to analysts on the company’s earnings call, AMD CEO Lisa Su said the results marked “a clear inflection in our growth trajectory and a structural shift in our business,” with AMD’s data center segment now the primary driver of revenue and earnings growth.

“As AI adoption scales, demand is increasing not only for accelerators, but also for the high-performance CPUs that power and orchestrate those workloads,” she said.

In March 2026, Su said that AMD was experiencing CPU server demand that had “far exceeded” expectations, noting that the increased demand had primarily been driven by the rise in agentic AI applications, adding that this had undoubtedly led to CPU supply chains tightening.

During the Q1 2026 earnings call, Su reiterated this point, saying that inference and agentic AI were increasing the need for server CPU compute. Consequently, AMD has upped its growth forecast for the server CPU market over the next three to five years from 18 percent to 35 percent annually, with the expectation that it would hit more than $120bn by 2030.

“In response to this demand, we are working closely with our supply chain partners to meaningfully increase our wafer and back-end capacities to support this growth,” Su said. “As a result, we now expect server CPU revenue to grow by more than 70 percent YoY in the second quarter, with robust growth continuing through the second half of 2026 and into 2027 as we ramp our next-generation Epyc processors.”

Beyond CPU demand, Su also commented on the 6GW GPU deal AMD signed with Meta in February 2026, saying that shipments were on track to begin in the second half of this year. The first deployment will comprise custom Instinct GPUs based on AMD’s MI450 architecture and AMD’s sixth-generation Epyc CPUs, codenamed ‘Venice’, built on the AMD Helios rack-scale architecture. Regarding Helios, AMD said it is expecting initial volume in Q3, with a significant ramp in Q4 and into Q1 2027.

In reference to the company’s October 2025 deal with OpenAI to also deploy 6GW-worth of GPUs starting the second half of 2026, Su said it was “going really well.” OpenAI had previously said it would build a 1GW data center using AMD MI450 chips, but no information about where OpenAI, or Meta, will be deploying the initial GPUs has been provided.

When asked about supply chain concerns moving forward, unlike other execs on recent earnings calls, Su made no mention of the ongoing conflict in the Middle East, instead saying that AMD has “good visibility now into the deployments that are on track for 2027.”

“When I say good visibility, it's visibility down to which data centers the GPUs are going to be installed in. That's necessary, just given all of the constraints out there. We feel that there is tightness in the supply chain. There is certainly tightness in data center build-outs, but we are confident in our ability to supply to the levels of growth that we're talking about and to exceed the levels of growth that we're talking about.

"We're also working very closely with our customers and our partners to ensure that we have good visibility to data center power. There is much more power that's coming online in 2027.”