AMD Stock Surged Over 16% On Q1 Earnings And Q2 Outlook

Catenaa, Wednesday, May 06, 2026- AMD stock surged by over 16% on Wednesday after the company’s earnings and revenue outlook beat Wall Street expectations. 

For the quarter, AMD saw earnings per share (EPS) of $1.37 on revenue of $10.25 billion. Analysts were calling for EPS of $1.28 and revenue of $9.89 billion, according to Bloomberg analyst consensus estimates.

The company saw EPS of $0.96 and revenue of $7.43 billion in the same quarter last year.

In the second quarter, AMD says it will see between $10.9 billion and $11.5 billion in revenue. Wall Street had the amount pegged at $10.52 billion.

AMD stock rose more than 16% on the news, taking its year-to-date gains over 92%.

AMD’s Q1 data center revenue came in at $5.8 billion, up 57% year over year and ahead of expectations of $5.6 billion.

The company’s earnings come after Intel reported its own earnings on April 23, beating analysts’ expectations on the top and bottom lines and providing a better-than-anticipated outlook on the strength of its data center business. That sent Intel stock soaring 24%.

CPUs are becoming increasingly important in data centers due to the explosion of interest in AI agents, semi- or fully autonomous AI bots that can perform tasks on users’ behalf.

When agents take action, they use tools and software that run on CPUs, driving a massive increase in processor demand.

Like Intel, AMD sells its own line of CPUs, but unlike its rival, it also offers high-powered GPUs for training and running AI models, giving it the chance to attract a broader array of customers.

To that end, AMD is preparing to launch its first rack-scale system called Helios, which will combine the company’s GPUs and CPUs into a larger server rack, similar to Nvidia’s Vera Rubin-powered NVL72 rack system.

AMD’s Client segment brought in $2.9 billion versus expectations of $2.73 billion, while its gaming business hit $720 million. Wall Street was projecting $668 million.

According to the International Data Corporation, global PC shipments are expected to fall 11.3% in 2026 due to the ongoing global memory shortage. Tablet shipments, meanwhile, could decline 7.6%.

During Apple’s Q2 earnings call last week, CEO Tim Cook noted that increased memory prices will likely hit that company’s margins in the coming quarters.