AMD posts 38% revenue growth to $10.25 billion in Q1, beating analyst expectations as data center demand accelerates

AMD generated Q1 revenue of $10.25 billion, up 38% year over year, with adjusted EPS of $1.37 up 43%. Both figures exceeded analyst consensus estimates of $9.91 billion revenue and $1.29 adjusted EPS.

Data center revenue jumped 57% year over year to $5.8 billion, driven by strong demand for Epyc CPUs and Instinct GPUs. CEO Lisa Su attributed growth to 'accelerating demand for AI infrastructure' and 'inferencing and agentic AI' (self-directed AI systems) driving demand for high-performance chips.

AMD's gross profit margin expanded by 300 basis points year over year to 53%, while GAAP net income surged 95% to $1.38 billion. The company issued Q2 guidance calling for 46% revenue growth to $11.2 billion at the midpoint, exceeding the $10.5 billion Wall Street anticipated.

AMD announced a deal with Meta Platforms to deploy 6 gigawatts of AMD Instinct GPUs, with the first gigawatt using custom MI450-based GPUs. The company also cited collaborations with AWS, Google Cloud, Microsoft Azure, and Tencent Holdings on cloud instances powered by 5th-generation Epyc CPUs.