{"id":25205,"date":"2026-05-06T11:39:25","date_gmt":"2026-05-06T11:39:25","guid":{"rendered":"https:\/\/www.europesays.com\/news\/25205\/"},"modified":"2026-05-06T11:39:25","modified_gmt":"2026-05-06T11:39:25","slug":"amd-stock-soars-on-q1-earnings-beat-better-than-expected-outlook","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/25205\/","title":{"rendered":"AMD stock soars on Q1 earnings beat, better-than-expected outlook"},"content":{"rendered":"\n

AMD (AMD<\/a>) reported its first quarter results after the bell on Tuesday, beating analysts\u2019 expectations on the top and bottom lines and topping Wall Street\u2019s projections on second quarter revenue outlook.<\/p>\n

AMD stock rose more than 18% on the news in premarket trading on Wednesday.<\/p>\n

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.<\/p>\n

The company saw EPS of $0.96 and revenue of $7.43 billion in the same quarter last year.<\/p>\n

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.<\/p>\n

AMD\u2019s Q1 data center revenue came in at $5.8 billion, up 57% year over year and ahead of expectations of $5.6 billion.<\/p>\n

The company\u2019s earnings come after Intel (INTC<\/a>) reported its own earnings on April 23, beating analysts\u2019 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%.<\/p>\n

Read more:\u00a0Live coverage of corporate earnings<\/a><\/p>\n

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\u2019 behalf.<\/p>\n

When agents take action, they use tools and software that run on CPUs, driving a massive increase in processor demand.<\/p>\n

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.<\/p>\n

To that end, AMD is preparing to launch its first rack-scale system called Helios, which will combine the company\u2019s GPUs and CPUs into a larger server rack, similar to Nvidia\u2019s Vera Rubin-powered NVL72 rack system.<\/p>\n

AMD\u2019s 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.<\/p>\n

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%.<\/p>\n

During Apple\u2019s (AAPL<\/a>) Q2 earnings call last week, CEO Tim Cook noted that increased memory prices will likely hit that company\u2019s margins in the coming quarters.<\/p>\n

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