AI Server Demand Surges: AMD Raises CPU Market Target to $120 Billion, Guides Q2 Revenue Above $11.2 Billion
AMD reported revenue of $10.3 billion in the first quarter of 2026, a 38% year-over-year increase. Data center business growth reached 57%, hitting $5.8 billion, a new quarterly record. Non-GAAP earnings per share were $1.37, up 43% year-over-year; free cash flow surged 253% to $2.57 billion. Management raised its forecast for the server CPU market size from $60 billion to $120 billion due to surging AI demand. Q2 revenue guidance is $11.2 billion, exceeding market expectations by $500 million
AMD reported revenue of $10.3 billion in the first quarter of 2026, a 38% year-over-year increase. The data center business saw robust growth of 57% to $5.8 billion, setting another new quarterly historical high. Non-GAAP earnings per share were $1.37, up 43% year-over-year; free cash flow soared 253% to $2.57 billion, also hitting a historical record. The biggest highlight of the conference call was management's decision to double its forecast for the server CPU market size from $60 billion to over $120 billion, citing that inference and agent-based AI have significantly boosted demand for CPU computing power. Q2 revenue guidance is approximately $11.2 billion, beating market expectations by about $500 million.
