Lisa Su, chair and chief government officer of Superior Micro Gadgets Inc. (AMD), throughout the 2026 CES occasion in Las Vegas, Nevada, US, on Monday, Jan. 5, 2026.
Bridget Bennett | Bloomberg | Getty Pictures
Superior Micro Gadgets reported first-quarter earnings Tuesday that topped expectations, whereas the corporate’s income forecast additionally exceeded estimates as demand soars for chips to energy synthetic intelligence workloads.
The inventory ripped 18% greater on Wednesday.
This is how the chipmaker did versus LSEG consensus estimates for the quarter led to March:
- EPS: $1.37 vs. $1.29 adjusted anticipated
- Income: $10.25 billion vs. $9.89 billion anticipated
Income climbed 38% from $7.44 billion a 12 months in the past, the corporate mentioned in a launch on Tuesday. Knowledge middle gross sales elevated 57% to $5.8 billion from $3.67 billion in the identical interval a 12 months earlier. Web earnings rose to $1.38 billion, or 84 cents per share within the quarter, from $709 million, or 44 cents per share, a 12 months in the past.
For the second quarter, AMD mentioned it expects about $11.2 billion in income, versus expectations of $10.52 billion, in response to LSEG.
AMD CEO Lisa Su mentioned within the assertion that the info middle unit is now the “major driver of our income and earnings development.”
“Wanting forward, we count on server development to speed up meaningfully as we scale provide to fulfill demand,” Su mentioned.
In ready remarks forward of the earnings name, Su mentioned the corporate has “robust and rising confidence” in its capability to achieve tens of billions of {dollars} in information middle AI income subsequent 12 months “and to exceed our long-term development goal of larger than 80 % within the coming years.”
AMD’s inventory has been on a tear, greater than tripling over the previous 12 months, together with a 66% bounce up to now in 2026. Whereas the corporate has trailed far behind rival Nvidia available in the market for graphics processing items (GPUs) to energy AI information facilities, traders have poured into AMD’s inventory extra not too long ago on optimism that the chance is massive sufficient for a number of gamers.
In contrast to Nvidia, AMD has lengthy been a number one maker of central processing items, or CPUs, that are having fun with a significant renaissance as agentic AI shifts compute wants. AMD shares popped final week when AMD and Intel introduced they’re going to pair up on a brand new instruction set for x86 CPUs. The brand new characteristic, referred to as AI Compute Extensions, goals to extend efficiency and power effectivity by boosting compute density by 16 instances.
The chip trade has confronted a world reminiscence scarcity due to insatiable AI demand in addition to capability constraints for each manufacturing and superior packaging, and provide chain challenges because of the battle in Iran.
That is all contributing to a frenzy in quite a few semiconductor-related names. Intel simply had its finest month ever in April, with shares greater than doubling as the corporate reported first-quarter outcomes that trounced analysts’ estimates. Shares of reminiscence maker Micron are up greater than 700% prior to now 12 months, pushing the corporate’s market cap previous $700 billion.
Along with CPUs and GPUs, AMD can be anticipated to ship its first full rack-scale system for AI information facilities, Helios, later this 12 months. It is meant to rival Nvidia’s Grace Blackwell and Vera Rubin methods that promote for upwards of $3 million.
Each OpenAI and Meta have already signed up for shipments of Helios, marking AMD’s system as a viable second possibility for AI giants and hyperscalers scrambling to safe sufficient compute.
Meta mentioned in February {that a} multiyear take care of AMD entails deploying as much as 6 gigawatts of the corporate’s GPUs for AI information facilities and contains use of AI-optimized CPUs.
Su mentioned in her ready remarks that shipments are set to start within the second half of the 12 months.
“Along with our beforehand introduced OpenAI partnership, these engagements place AMD as a core accomplice to the world’s largest AI infrastructure builders, with deep co-engineering relationships and multi-year visibility into large-scale deployments,” Su mentioned.
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