Advanced Micro Devices delivered stronger-than-expected first-quarter results Tuesday, fueled by surging demand for artificial intelligence infrastructure and rapid growth in its data center business. Investors responded enthusiastically, sending the company’s shares soaring 16% on Wednesday.

The chipmaker reported adjusted earnings of $1.37 per share on revenue of $10.25 billion, both comfortably ahead of Wall Street expectations. Revenue jumped 38% compared with the same period a year earlier, reflecting accelerating demand for AI-focused computing products.

A major driver of the company’s performance was its data center division, where revenue surged 57% year over year to $5.8 billion. Net income also nearly doubled, rising to $1.38 billion from $709 million a year earlier.

Looking ahead, AMD forecast second-quarter revenue of approximately $11.2 billion, significantly above analyst estimates, reinforcing optimism that the AI boom continues to create massive opportunities across the semiconductor industry.

CEO Lisa Su described the data center segment as the company’s primary engine for growth, adding that AMD expects server demand to accelerate further as it expands production capacity to meet increasing customer needs. She also expressed confidence that the company could generate tens of billions of dollars in AI-related data center revenue in the coming years.

Although Nvidia remains the dominant force in AI graphics processors, investors are increasingly betting that the AI market is large enough for multiple winners. AMD’s stock has more than tripled over the past year, including a sharp rally in 2026 alone.

Unlike Nvidia, AMD has long been a leader in CPUs, a segment now experiencing renewed importance as AI workloads evolve. Recent collaboration efforts between AMD and Intel on new AI-focused CPU technologies have further strengthened investor confidence in the company’s long-term positioning.

The broader semiconductor industry continues to benefit from explosive AI demand, despite ongoing supply-chain pressures and global manufacturing constraints. Companies tied to AI infrastructure, memory, and advanced computing have seen substantial gains as tech giants race to expand data center capacity.

AMD is also preparing to launch its first rack-scale AI system, known as Helios, later this year. The platform is designed to compete directly with Nvidia’s premium AI systems and has already attracted interest from major technology firms, including OpenAI and Meta.

Meta previously announced a multiyear agreement involving large-scale deployment of AMD AI hardware for future data centers. According to Su, shipments are expected to begin in the second half of the year, further positioning AMD as a key player in the rapidly expanding AI ecosystem.