AMD 1Q26 First Take: A solid print, with a revenue beat driven by server CPUs.
AI GPU (MI355) was soft, down slightly QoQ, pressured by revenue adjustments in China.
Versus the recent AI GPU trajectory, the market is more focused on the upcoming MI450 family.
AMD has signed collaborations with OpenAI and Meta, and MI450 will shift delivery from a single-chip model to rack-scale clusters.
Beyond the quarter, guidance was strong.
AMD guides next-quarter revenue of $10.9–11.5bn (+6–12% QoQ), topping the Street at ~$10.5bn; non-GAAP GPM is guided to ~56% (vs. 55.3% consensus).
The expected beat next quarter is mainly driven by server CPUs.
Dolphin Research estimates server CPU and related revenue could reach ~$3.8bn, up ~15% QoQ.
Overall, AMD has entered an upswing.
The recent share rally is largely powered by the server CPU cycle.
The market’s original focus was on MI450 ramping in 2H, as AMD transitions from chip-level to system-level delivery, keeping 1H expectations muted.
With model workloads shifting from training to inference, the importance of server CPUs has become more pronounced, pulling forward upside in results.
Price increases and upgrades in server CPUs have laid the groundwork for full-year growth.
If MI450 ramps and ships smoothly, it should bring incremental orders.A dual-engine AI stack of 'CPU+GPU' opens a larger upside for AMD. $AMD(AMD.US)
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
