AMD Stock Soars 15% After Q1 Earnings. CEO Doubles CPU Outlook on Agentic AI

Dr. Lisa Su nearly doubled AMD's long term annual growth outlook for CPUs.

The outlook for the CPU agentic AI trend just got a turbo boost.

Advanced Micro Devices shares surged after the company’s management nearly doubled its long-term growth outlook for CPUs.

Of course, this isn’t a surprise to Key Context readers. We’ve been pounding the table repeatedly about this new CPU agentic AI trend, months ahead of Wall Street (as we also wrote after Intel reported strong results two weeks ago).

Let’s look at AMD’s numbers.

Strong beat-and-raise. AMD reported first-quarter adjusted earnings per share of $1.37, compared to Wall Street’s consensus estimate of $1.29. Revenue came in at $10.3 billion, up 38% year-over-year, above analysts’ expectations of $9.9 billion. The data-center segment rose 57% versus the prior year to a record $5.8 billion.

AMD also provided robust guidance. The company’s outlook for the current quarter was $11.2 billion in sales at the midpoint of its range, versus a $10.5 billion consensus analyst estimate.

“We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators,” AMD CEO Lisa Su said in the news release. “Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand.”

AMD and Intel use the x86 chip architecture to make the central processing units that act as the main computing brains for PCs and servers. AMD shares were up 15% in after-hours trading after rising 4% in the regular session.

Here are the most important remarks from the conference call with analysts and investors, along with Tae’s Key Takeaways below: