In addition, the company indicated that demand for its Instinct MI450-series accelerators and Helios systems from its alpha customer is already exceeding its initial expectations for 2027. Furthermore, multiple customers are now evaluating large-scale deployments for both training and inference workloads.
"With this expanded visibility, we have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027 and to exceed our long-term growth target of greater than eighty percent in the coming years," Su said.
At the same time, sales of AMD's Instinct accelerators — while growing 38% year-over-year — dropped slightly quarter-over-quarter due to lower sales to customers in China. Nonetheless, the company remains optimistic about Instinct's trajectory in Q2 and then in the second half of the year when the Instinct MI450-series starts to ramp.
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AMD not only set its own record in enterprise hardware sales during the quarter, but it continued to outsell Intel, which recorded $5.1 billion in revenue and $1.5 billion in operating income in the first quarter .
When it comes to sales of client Ryzen CPUs, Radeon GPUs, and game console SoCs, AMD's revenue increased $3.6 billion, an increase of 23% year-over-year. Client revenue alone reached $2.9 billion, up 26%, driven by strong Ryzen processor demand and commercial PC share gains. Gaming revenue rose 11% to $720 million due to stronger Radeon GPU demand.
" Semi-custom revenue declined year-over-year as expected at this stage of the console cycle, while engagements with customers on next generation platforms remain strong," said the head of AMD. "In graphics, revenue increased year-over-year, led by demand for our latest generation Radeon nine thousand series GPUs.
AMD warned that both client and gaming revenue in the second half of the year would decline by more than 20% compared to the first half because of higher memory and component costs.
" Similar to the PC market, we believe that second half demand in gaming will be impacted by higher memory and component costs, and we are planning the business accordingly," said Su.
AMD's embedded revenue reached $873 million, up 6% year-over-year as industrial and edge demand improved. The business unit generated $338 million operating income, up from $328 million a year ago. The success of AMD's embedded division was driven by the company's strong positions across a variety of market segments that span from aerospace to communications and from defense to scientific applications.
"Design win momentum for [embedded products] grew by a double-digit percentage year over year, with billions of dollars in new wins across markets, reflecting the continued expansion of our embedded business from a primarily FPGA-focused portfolio to a broader set of adaptive embedded x86 and semi-custom solutions, significantly expanding our TAM," said Su.
AMD projects Q2 2026 revenue to reach about $11.2 billion ± $300 million. At the midpoint of the guidance, this would represent a 46% increase compared to the same period last year and about 9% growth sequentially. The company also expects non-GAAP gross margin to be around 56%.
"[Q2 results will be ]driven by a very strong growth in our data center segment, [modest] growth in our client and the gaming segment, and a double-digit growth in our embedded segment," said Jean Hu, AMD executive vice president, CFO and treasurer.
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Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-23/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Neilbob Great that AMD is able to see their own bright future all the way to 2030 due to A.I…gagh! But I don't think I can face another four years of this nonsense. If the need for CPUs and GPUs is going to continue and increase, so is the demand for the other associated components. So weary and deflated. Reply
Gururu Silicon stocks are sky high right now. Thoughts of a bubble are in hindsight I think. Reply
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