AMD reports first-quarter 2026 sales up 38% to $10.3 billion, with data center segment becoming primary revenue driver at $5.8 billion

AMD's data center sales rose 57% in the quarter to $5.8 billion, now accounting for more than 56% of total company revenue. CEO Lisa Su stated this marks 'a clear inflection in our growth trajectory and a structural shift in our business.'

AMD doubled its 2030 projection for the total addressable market for server CPUs to more than $120 billion—up from $60 billion previously—based on belief that CPUs will play a larger role in agentic AI (AI agents that perform tasks autonomously) and AI inference training. The company now expects the CPU-to-GPU ratio in AI data centers to shift from 1-to-4 or 1-to-8 toward closer to 1-to-1.

AMD is expanding AI partnerships with Meta Platforms and OpenAI, which will add 'tens of billions of dollars' to data center revenue in 2027. The company will deploy up to 6 gigawatts of Instinct GPUs for Meta and co-design a custom MI450 GPU accelerator for the company.

Operating expenses surged 42% in the quarter to $3.1 billion, driven by 'aggressive investment' in AI research and development, with expenses projected to climb to $3.2 billion in the second quarter.