Advanced Micro Devices beat estimates last quarter due to surging revenue from data centre products, with shares jumping 16.5%.
Earnings per share were US$1.37, up from $0.96 and passing LSEG consensus estimates of $1.29. Revenue grew 38% to $10.25 billion, above estimates of $9.89 billion.
“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,” said AMD chair and CEO Lisa Su.
“We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators.”
Revenue for its data centre segment surged 57% to $5.8 billion, which it credited to high demand for its Epyc microprocessors and Instinct chips.
Its client and gaming segment’s revenue rose 23% to $3.6 billion. Client revenue grew 26%, driven by AMD’s Ryzen processors.
For the second quarter, AMD projects revenue of $11.2 billion, plus or minus $300 million. This is well above estimates of $10.52 billion.
The company is also set to launch its Helios system, a server rack for artificial intelligence data centres, in the year’s second half. Meta and OpenAI ordered Helios racks in recent months, and customer forecasts for the system have exceeded AMD’s expectations, according to Su.
Shares in AMD (NASDAQ: AMD) closed 4% higher at $355.26, and had jumped 16.5% in after-hours trading by 10 am AEST (12 am GMT). Its market capitalisation is $579.19 billion.
