AMD’s quarterly results were once again well-received by investors. The company expects to generate approximately $17 billion in revenue, surpassing Intel’s projected $15–16 billion. It would be a historic turnaround: never before has AMD posted higher revenue than Intel.
Intel will still remain larger if the forecasts hold true, thanks to its in-house foundry services. AMD does not manufacture its own chips, whereas Intel does have that capability. Nevertheless, Intel recently chose to turn to rival TSMC for chip production, a decision it would prefer not to make.
Based purely on chip sales, AMD would take the lead, a first for the company that once began by offering competing products based on designs reverse-engineered from Intel.
Right now, AMD is primarily building on the momentum that has been gaining steam over the past few quarters. Revenue this time rose 45 percent year-over-year to $13.4 billion. A year earlier, the company reported $9.25 billion, and at that time, investors were still concerned about flat margins.
Data center segment nearly doubles
The data center segment generated $8.5 billion, an increase of 97 (!) percent. The balance of power in the x86 server market has also been shifting for quite some time. In the first quarter of 2026, AMD had shipped 33.2 percent of x86 server processors , with a larger share in terms of revenue. AMD accounted for 46.2 percent of x86 server revenue.
According to CEO Lisa Su, 2027 will be even stronger. She noted that the company has said that, as a whole, it will grow by more than 80 percent, and that the data center CPU business will roughly double. She added that revenue from data center AI is expected to more than double.
Su says the supply chain can handle the significant growth. “We’ve worked across our entire supply chain to secure wafers, substrates, advanced packaging, memory, and other critical components.” In addition, AMD is investing in long-term capacity alongside partners, a move that’s needed on a larger scale than ever before due to both the rise of AI and the company’s stronger competitive position relative to Intel.
Client division slumps
Nevertheless, sky-high memory prices are leading to a decline in the client division. That segment, which includes gaming, fell by 8 percent to $3.7 billion. That’s a steeper decline than the 5 percent drop Intel reported. However, the problem lies primarily with gaming, as revenue from PC chips rose by 7 percent to $2.9 billion. This was driven by strong sales of mobile Ryzen processors. Su cites major banks, automakers, and healthcare companies that are rolling out Ryzen PRO PCs.