Strong AI Chip Demand: AMD Forecasts Q2 Revenue to Exceed Expectations
AMD predicts its second-quarter revenue will surpass Wall Street expectations, driven by robust demand for AI chips. The company's data center segment saw a 57% increase in first-quarter revenue, and AMD is emerging as a key challenger to NVIDIA amidst accelerated investment in AI infrastructure. Partnerships with Meta Platforms and OpenAI have also been announced.
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- 📰 Published: May 6, 2026 at 13:18
- 🔍 Collected: May 6, 2026 at 13:31 (13 min after Published)
- 🤖 AI Analyzed: May 6, 2026 at 14:05 (33 min after Collected)
Central News Agency
(Central News Agency, Santa Clara, California, 5th, comprehensive foreign report) Cloud computing companies are accelerating their spending on artificial intelligence (AI) infrastructure, and Advanced Micro Devices (AMD) today predicted that its second-quarter revenue will be higher than Wall Street expectations, mainly due to strong demand for AMD's data center chips.
According to Reuters, AMD's stock price has surged by about 60% this year and rose by another 5% in after-hours trading.
Analysts and investors view AMD as the main challenger to Nvidia's dominant position in AI chips (often referred to as graphics processing units or GPUs).
However, as companies shift from training models to running applications based on this technology, AMD has also developed new business opportunities for AI hardware in the form of central processing units (CPUs).
According to data from the London Stock Exchange Group (LSEG), sales of both types of server chips are counted in AMD's data center segment, which saw its first-quarter revenue jump 57% to $5.8 billion, higher than analysts' expected $5.64 billion.
Earlier this year, AMD announced that it had agreed to sell up to $60 billion worth of AI chips to Meta Platforms over five years, a deal that allows Facebook's parent company Meta to acquire up to 10% of AMD's shares. AMD also reached an agreement with OpenAI last year.
AMD expects its second-quarter revenue to be $11.2 billion, with a fluctuation range of $300 million, compared to the market's estimate of $10.52 billion.
AMD expects an adjusted gross margin of approximately 56% for the second quarter, while analysts expect 55.4%.
Although analysts believe that AMD is best positioned to benefit from the surge in CPU demand due to its market share growth and product roadmap planning, competition from Intel, which released strong revenue forecasts last month, is also increasing. (Compiled by: Li Pei-shan) 1150506
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(Central News Agency, Santa Clara, California, 5th, comprehensive foreign report) Cloud computing companies are accelerating their spending on artificial intelligence (AI) infrastructure, and Advanced Micro Devices (AMD) today predicted that its second-quarter revenue will be higher than Wall Street expectations, mainly due to strong demand for AMD's data center chips.
According to Reuters, AMD's stock price has surged by about 60% this year and rose by another 5% in after-hours trading.
Analysts and investors view AMD as the main challenger to Nvidia's dominant position in AI chips (often referred to as graphics processing units or GPUs).
However, as companies shift from training models to running applications based on this technology, AMD has also developed new business opportunities for AI hardware in the form of central processing units (CPUs).
According to data from the London Stock Exchange Group (LSEG), sales of both types of server chips are counted in AMD's data center segment, which saw its first-quarter revenue jump 57% to $5.8 billion, higher than analysts' expected $5.64 billion.
Earlier this year, AMD announced that it had agreed to sell up to $60 billion worth of AI chips to Meta Platforms over five years, a deal that allows Facebook's parent company Meta to acquire up to 10% of AMD's shares. AMD also reached an agreement with OpenAI last year.
AMD expects its second-quarter revenue to be $11.2 billion, with a fluctuation range of $300 million, compared to the market's estimate of $10.52 billion.
AMD expects an adjusted gross margin of approximately 56% for the second quarter, while analysts expect 55.4%.
Although analysts believe that AMD is best positioned to benefit from the surge in CPU demand due to its market share growth and product roadmap planning, competition from Intel, which released strong revenue forecasts last month, is also increasing. (Compiled by: Li Pei-shan) 1150506
Choose to stand with facts. Every sponsorship is a force to protect press freedom.
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The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.
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