AMD continues to ride EPYC, GPU data center waves

AMD is now a data center chip vendor in terms of revenue as the company handily topped first quarter expectations.

The chipmaker reported first quarter earnings of $1.4 billion, or 84 cents a share, on revenue of $10.3 billion, up 38% from a year ago. Non-GAAP earnings were $1.37 a share.

Wall Street was looking for AMD to report first quarter non-GAAP earnings of $1.29 a share on revenue of $9.92 billion.

AMD CEO Lisa Su said the company is "seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators." Su added that "we expect server growth to accelerate meaningfully as we scale supply to meet demand" since customers were bullish on AMD's MI450 Series and Helios offerings.

By the numbers:

• Data center revenue in the first quarter was $5.8 billion, up 57% from a year ago. EPYC server chip demand was strong and shipments of the AMD Instinct GPU continued to ramp.
• PC and gaming revenue was $3.6 billion, up 23% from a year ago. The PC business made up for most of the growth and revenue total.
• Embedded revenue was $873 million, up 6% from a year ago.

For the second quarter, AMD is projecting revenue of $11.2 billion, give or take $300 million.