Overview
- AMD, which reported results Tuesday, posted revenue of $10.25 billion and adjusted EPS of $1.37, and the stock rose more than 12% in after-hours trading.
- Management guided Q2 revenue to $10.9–$11.5 billion and said it has growing confidence in delivering tens of billions in annual AI data center revenue by 2027.
- AMD disclosed large arrangements with Meta and OpenAI that include performance-based warrants for up to 320 million shares, with first shipments set for the second half of 2026.
- CEO Lisa Su said agentic AI is lifting CPU needs for orchestration and data movement, and AMD now pegs the server CPU market at more than 35% annual growth to about $120 billion by 2030.
- The company said it has secured critical AI memory supply, but rising memory costs are expected to cut second-half 2026 PC and gaming revenue by more than 20%, with data center margins and expenses still key watchpoints.