AMD’s Data Center Revenue Jumps 57% as Its Stock Bets on Execution

AMD’s data center revenue jumped 57% in the first quarter of 2026, and Wall Street still can’t agree on what the chipmaker is worth. Shares of Advanced Micro Devices Inc. (AMD, ISIN US0079031078) have more than tripled over the past year. The company’s own guidance calls for another 46% revenue jump this quarter.

That growth is genuine, but the stock has already priced in years of it. Stifel raised its price target 41% the same week Cathie Wood’s ARK Invest kept selling AMD shares. A Samsung earnings report knocked the stock down days later for reasons that had nothing to do with AMD’s own results.

Data Center Revenue Jumps 57% in a Single Quarter

The numbers come straight from AMD’s most recent quarterly filing. Data center net revenue hit $5.8 billion in the quarter ended March 28, 2026, up 57% from $3.7 billion a year earlier, driven by AMD’s fifth-generation EPYC server processors and Instinct MI350 series GPUs (graphics processing units). Operating income for the segment nearly doubled to $1.6 billion, from $932 million a year earlier.

Total company revenue reached $10.25 billion, up 38% year over year, with earnings per share of $1.37 against analyst estimates of $1.29.

Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand.

Lisa Su, AMD’s chair and chief executive, told investors on the earnings call, calling the data center unit “the primary driver of our revenue and earnings growth.”

For the current quarter, AMD guided to roughly $11.2 billion in revenue, implying growth of about 46% from a year ago and a 9% sequential increase. Non-GAAP gross margin is expected near 56%.

• $5.8 billion – data center revenue in the first quarter, up 57% year over year
• $11.2 billion – AMD’s guidance for this quarter’s total revenue
• $1.6 billion – data center operating income, up from $932 million a year earlier

Client and Gaming, AMD’s PC and console business, added $3.6 billion, up 23%. AMD’s consumer following remains loyal even as data center dollars dominate the growth story. Enthusiasts recently cleared out a limited-edition anniversary chip within minutes, a reminder that AMD’s gaming fan base still moves fast, even if it no longer drives the stock.

Wall Street Is Split on AMD

Few large-cap tech stocks have drawn a wider spread of opinion this month. Stifel raised its price target 41%, to $635 from $450, and told clients to expect a Q2 “beat and raise.” Back in May, after AMD’s first-quarter print, Goldman Sachs analyst James Schneider had lifted his own target to $450 from $240, citing improving confidence in AMD’s AI infrastructure position.

Not everyone is convinced the rally has room left. William Blair analyst Sebastien Naji initiated coverage calling AMD an “AI winner,” then rated the stock Neutral anyway. Cathie Wood’s ARK Invest, one of the most prominent AI-focused fund managers, kept selling AMD shares even while adding to positions in SpaceX and other growth names.

• Stifel – price target raised 41% to $635, expects a Q2 “beat and raise”
• William Blair – Sebastien Naji calls AMD an “AI winner” but rates it Neutral
• ARK Invest – Cathie Wood keeps trimming AMD even as she adds SpaceX

Meta, OpenAI and Oracle Placed Multiyear Bets

AMD’s data center pitch increasingly rests on a small number of very large customers. Four commitments in particular have reshaped how investors model the business.

• OpenAI – a multiyear agreement covering 6 gigawatts of AMD accelerator deployment
• Meta – a deal announced in February for up to 6 gigawatts of AMD GPUs and AI-optimized CPUs (central processing units), with shipments beginning in the second half of 2026
• Oracle – a plan to deploy 50,000 AMD chips across its cloud infrastructure
• Oak Ridge National Laboratory – agreements to build two additional AMD-powered supercomputers

Meta’s own chip ambitions complicate the picture slightly. The social media company is moving its own Iris AI chip into production in September, a sign that even AMD’s biggest customers are hedging with custom silicon of their own rather than depending on one supplier.

Su has pointed to this customer list as evidence of staying power, saying AMD has “strong and increasing confidence” in reaching tens of billions of dollars in data center AI revenue next year.

Nvidia’s Data Center Business Dwarfs AMD’s

Even after AMD’s growth, the scale gap with Nvidia remains enormous. Nvidia’s data center revenue alone came to $75.2 billion in its most recent quarter, roughly thirteen times the size of AMD’s entire data center business.

Nvidia chief executive Jensen Huang has called the buildout behind those numbers “the largest infrastructure expansion in human history.” AMD is not trying to overtake that scale. Every dollar of data center revenue it wins instead comes from customers who want a second supplier standing next to Nvidia.

A Samsung Earnings Beat Knocked AMD Down Anyway

The clearest sign of how little room for error AMD’s stock now carries came from a company that doesn’t even compete with it directly. Samsung Electronics reported record profit in AI memory chips, and the news triggered a sector-wide selloff that pulled AMD down to $511.86, a drop of 1.19% on the day.

Samsung’s results confirmed strong AI memory momentum. But rising valuations across the whole chip sector had already drawn scrutiny, and Samsung’s report gave investors a reason to book profits, AMD included.

Anton Kharitonov, an analyst at Traders Union, described the technical picture as fragile. “As long as the price holds under $537.81, I remain cautious and stay on the defensive side for AMD,” he said.

The stock recovered within days, climbing back above $550 on the Stifel upgrade and a separate AI campus partnership announcement. The swing is the pattern investors should expect going forward. Good news elsewhere in the chip sector can hurt AMD’s valuation just as easily as it helps.

Is AMD Stock Overvalued Right Now?

AMD trades near 70 times forward earnings, about three times Nvidia’s multiple of roughly 24, a premium that assumes AMD’s data center growth keeps accelerating before its next chips have shipped in volume. Bulls say the growth rate justifies it. Skeptics say the multiple already prices in years of flawless execution.

Since 2020, AMD has generated about $239.3 billion in shareholder value, according to its own proxy filing, as its market capitalization grew 215%. That track record anchors the bull case. The counterargument is simpler: AMD’s price to earnings ratio has outrun Nvidia’s even though Nvidia is still growing faster in dollar terms.

The Next Chip Has to Work

AMD’s entire growth case for the second half of 2026 rests on two products that have not yet shipped in volume: the Instinct MI450 accelerator with its Helios rack-scale platform, and the Venice server CPU, built on a 2-nanometer process.

Analyst forecasts compiled by S&P Global put combined MI400-series revenue at about $7.2 billion this year, roughly a quarter of AMD’s data center sales, on shipments of around 258,000 units at an average price near $30,926. Data center GPU revenue overall is projected to surge 114% to $15 billion, while Venice-driven server revenue could climb 40% to $12.8 billion.

Add it up, and total data center revenue could rise 73% to $28.7 billion in 2026. None of that has happened yet. Every figure depends on AMD shipping the chips on schedule and hyperscalers deploying them at the pace they have promised.

Frequently Asked Questions

Is AMD Stock a Buy Right Now?

Most Wall Street analysts still rate AMD favorably. Of 36 analysts tracked over the past three months, 28 rate the stock Buy or Strong Buy, eight rate it Hold, and none recommend selling. Price targets range from $250 to $700, with an average near $520.

How Much Could the Meta Deal Be Worth to AMD?

The Wall Street Journal has estimated AMD’s multiyear agreement with Meta Platforms could add roughly $100 billion to AMD’s revenue over the life of the deal, though neither company has confirmed an exact figure publicly.

What Does AMD’s Embedded Segment Do?

AMD’s Embedded segment, built around its Xilinx acquisition, makes processors and programmable chips for industrial equipment, networking gear and automotive systems. The segment brought in $873 million in the first quarter of 2026, up 6% year over year, smaller than data center but steadier through economic cycles.

How Big Does AMD Think the AI Data Center Market Can Get?

AMD chief executive Lisa Su has told analysts she expects the total addressable market for data center chips, including CPUs, GPUs and networking silicon, to grow to $1 trillion by 2030. She has also targeted 35% annual growth for the overall business and 60% annual growth for the data center segment specifically over the next three to five years.

What Comes After the Instinct MI450?

AMD has already confirmed its Instinct MI500 series is in advanced design, with a launch targeted for 2027. Few technical details have been released beyond that timeline.

When Does AMD Report Next Earnings?

AMD is scheduled to report second-quarter 2026 results on Aug. 4, 2026, after the market closes. That report will be the first real test of whether the Instinct MI450 and Helios ramp is tracking the guidance AMD has already given Wall Street.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. AMD stock carries risks typical of semiconductor equities, including cyclical demand, competitive pressure and valuation swings. Consult a licensed financial advisor before making investment decisions. Figures are accurate as of publication and are subject to change.