AMD Revenue Rises 38% as Data Center Growth Exceeds Estimates

Advanced Micro Devices reported first-quarter results that topped analysts' estimates while its revenue forecast for the current quarter also exceeded expectations. Revenue climbed 38% from a year earlier to $10.25 billion. Data center sales increased 57% to $5.8 billion.

The company posted net income of $1.38 billion, or 84 cents per share. That compares with $709 million, or 44 cents per share, in the same period a year earlier. For the second quarter, the company expects revenue of about $11.2 billion. The data center unit is now the primary driver of revenue and earnings growth.

The company has strong and increasing confidence in its ability to reach tens of billions of dollars in data center AI revenue next year. It also expects to exceed its long-term growth target of greater than 80% in the coming years.

Shares of Advanced Micro Devices rose 16% following the earnings release. The stock has more than tripled over the past year. Investors have shown optimism that the artificial intelligence boom is just getting started. The chipmaker has trailed rival Nvidia in the market for graphics processing units used in AI data centers.

However, its central processing units are enjoying a renaissance as agentic AI shifts compute needs. The company and another chipmaker announced they will pair up on a new instruction set for x86 CPUs to increase performance and energy efficiency.

A separate announcement detailed that Aurora Innovation will begin hauling loads in driverless trucks for a distribution company under a commercial agreement. Trucks equipped with the self-driving system will transport goods between Dallas and Houston without a human safety driver on board.

A human observer will remain in the cab under an agreement with the truck manufacturer. The companies began a pilot program in 2023 using autonomous trucks with a safety operator. That pilot expanded to two round-trips daily between the Texas cities.

The distribution company recently approved moving to fully driverless operations that now run seven days a week. The approach uses the autonomous technology for the long-haul portion of the trip before handing off to a driver for local deliveries. The handoff occurs at terminals located right off the freeway in both cities.

The company plans to expand to new routes between distribution centers across the Sun Belt by the end of 2026. This marks the latest commercial win as the autonomous vehicle developer transitions to earning revenue on driverless routes. It launched its commercial self-driving truck service in Texas a year ago.

DoorDash shares surged more than 15% after the company reported 33% year-over-year revenue growth and issued strong guidance. Flutter Entertainment signaled an unchanged 2026 outlook with revenue guidance centered on a $18.3 billion midpoint. The company also plans to conclude its London listing review in the second quarter.

The semiconductor industry continues to face a global memory shortage driven by AI demand along with capacity constraints for manufacturing, advanced packaging and supply chain issues. Several chip-related stocks have seen sharp gains in recent months amid the frenzy.