-- Advanced Micro Devices (AMD) reported stronger-than-expected first-quarter results as demand for artificial intelligence infrastructure pushed data center revenue higher year-on-year.
Adjusted earnings per share rose to $1.37 from $0.96 a year earlier, compared with the $1.29 consensus on FactSet. Revenue climbed 38% to $10.25 billion, above the $9.90 billion modeled by analysts.
The chipmaker's stock was up 4.7% in extended trading. AMD shares have surged 66% year to date.
"We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with data center now the primary driver of our revenue and earnings growth," Chief Executive Lisa Su said in a statement. "We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance (central processing units) and accelerators."
Data center revenue gained 57% to $5.78 billion, driven by AMD EPYC processors and Instinct graphics processing units. The client and gaming division advanced 23% to $3.61 billion.
"Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand," Su said. "Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory."
AMD expects second-quarter revenue of $11.2 billion, plus or minus $300 million. The consensus is for $10.54 billion.
Wedbush Securities expected AMD to log a first-quarter beat amid CPU demand strength and a stronger-than-expected PC supply chain.
The brokerage raised its price target on AMD's stock to $400 from $290, and upgraded 2026 and 2027 financial estimates.
"We not only see upside for AMD's server CPU numbers (assuming supply chain availability), but we also are more confident overall in AMD's ability to grow faster, a result we reflect in both an uptick to our forecasts around future AMD sales for both GPUs and CPUs post (the second quarter)," Wedbush analysts, including Matt Bryson, said Monday.