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AMD Forecasts Second-Quarter Revenue Above Estimates, Cites Faster Server Growth

AMD beat first-quarter estimates and forecast second-quarter revenue of $10.90 billion to $11.50 billion above expectations, as data center revenue jumped 57% and the company reiterated confidence in its 2027 AI data center target.

Fact Check
The AMD IR press releases page confirms Q1 2026 results were published on May 5, 2026. The @KobeissiLetter X post (the original linked source) explicitly corroborates the -6% initial drop reversing to +2% gain and the earnings beat narrative. Pre-earnings coverage (Gotrade) confirms the May 5 date and the $9.8B guidance context. The specific stock movement percentages (-6% drop, +2% reversal) come from a single social media source rather than an official AMD filing or major financial data provider, which introduces minor uncertainty about the exact figures, but the overall narrative of a beat and stock reversal is well-supported. No conflicting evidence was found.
Summary

Advanced Micro Devices reported stronger-than-expected first-quarter 2026 results, with EPS of $1.37 versus estimates of $1.27 and revenue of $10.25 billion versus expectations of $9.85 billion. Data center revenue rose 57% year over year to $5.8 billion. AMD then forecast second-quarter revenue of $10.90 billion to $11.50 billion, above the $10.52 billion estimate cited in the source, and said server growth is expected to accelerate meaningfully. The company also reiterated confidence in reaching tens of billions of dollars in AI data center revenue by 2027. After initially falling 6% following the earnings release, AMD shares reversed course and later surged 15% in after-hours trading above $400 for the first time, adding about $90 billion in market value.

Terms & Concepts
  • EPS (earnings per share): A profitability metric showing how much net income is attributed to each outstanding share of a company’s stock.
  • Data center revenue: Income generated from products sold for large-scale computing infrastructure, including servers, cloud systems, and enterprise processing workloads.
  • After-hours trading: Trading that takes place after the regular stock market session ends.