AMD Beats the Skeptics as Data Center Revenue Surges Beyond Expectations
Lisa Su’s chipmaker served Wall Street a piping-hot beat, and investors didn’t leave a crumb. Advanced Micro Devices cleared expectations with $10.25B in Q1 revenue, 38% higher than a year ago as AI kept the engine running. The data center segment did the heavy lifting, generating $5.8B on surging demand for EPYC processors and Instinct GPUs.
- Meta and AMD plan to roll out up to 6GW of Instinct GPUs, while AWS, Google Cloud, and Azure are expanding EPYC offerings.
- Guidance came in strong at ~$11.2B vs. $10.52B consensus, lifting shares after hours and extending a rally that has tripled the stock in the past year with a 74% jump in April alone.
Clearing the high bar: CEO Su said demand for the MI450 Series and Helios rack-scale system is “exceeding our initial expectations,” with OpenAI and Meta already lined up as buyers in a direct move to challenge Nvidia’s Grace Blackwell, while at 42x forward earnings vs. Nvidia’s 22x, Nicholas Wealth’s David Nicholas warned that “anything less than perfection” could pressure the stock, though for now AMD’s AI flywheel is still spinning fast enough to keep believers in.
