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AMD warned on its Q1 2026 earnings call that rising global memory and component costs will tighten supply in H2 2026 and depress consumer demand. CEO Lisa Su said client and gaming demand will fall in the second half, and CFO Jean Hu forecast gaming revenue (GPUs and consoles) could decline more than 20% quarter‑on‑quarter versus the first half due to higher memory/component prices. The trend echoes comments from memory vendors such as Micron and SK Hynix and follows recent console price hikes f
AMD reported stronger-than-expected Q1 results, sending its stock up over 20% premarket after revenue of $10.25 billion and adjusted EPS $1.37 beat LSEG consensus. Data center revenue jumped 57% year-over-year to $5.8 billion, making the division the primary growth driver; AMD guided Q2 revenue to about $11.2 billion, above analyst estimates. CEO Lisa Su said AMD expects data center AI revenue to reach “hundreds of billions” next year and aims for sustained high growth as capacity expands. AMD plans to ship its rack-scale Helios AI systems later this year, with OpenAI and Meta signed as customers. The results underscore investor optimism around AI-driven chip demand and competition with NVIDIA in GPUs and CPUs.
AMD CEO Lisa Su said during the Q1 2026 earnings call that AMD has begun sampling the Instinct MI450 GPU to key customers and will ramp shipments of Helios AI racks in the second half of 2026. She reported customer demand outpacing AMD’s internal 2027 forecasts, with major customers and new partners negotiating large-scale deployments; OpenAI and Anthropic were named as linked parties. The MI450 (CDNA 5) doubles key metrics versus MI350: up to 40 PFLOP FP4, 20 PFLOP FP8, 432 GB HBM4 at 19.6 TB/s, 300 GB/s lateral interconnect, and variants MI455X (AI) and MI430X (HPC/sovereign AI). AMD positions MI450 against NVIDIA’s Vera Rubin and will reveal MI500 details at its July event.
AMD CEO and Chair Lisa Su said on the company’s Q1 2026 earnings call that the Helios data center AI platform is on track, with chip, software and system development meeting key milestones. AMD has already begun sampling the MI450 series GPUs to core customers and plans volume production in H2 2026. Customer demand has outpaced initial forecasts, with more large-scale deployment talks and additional multi-gigawatt opportunities emerging. Based on expanded demand visibility, Su expressed confidence that AMD’s data center AI business could reach annual revenue in the “tens of billions of dollars” by 2027 and exceed its long-term growth targets of over 80% in coming years. The update signals AMD’s stronger push into AI accelerators and server markets.
AMD warned on its Q1 2026 earnings call that rising global memory and component costs will tighten supply in H2 2026 and depress consumer demand. CEO Lisa Su said client and gaming demand will fall in the second half, and CFO Jean Hu forecast gaming revenue (GPUs and consoles) could decline more than 20% quarter‑on‑quarter versus the first half due to higher memory/component prices. The trend echoes comments from memory vendors such as Micron and SK Hynix and follows recent console price hikes from Microsoft and Sony. Despite consumer headwinds, AMD expects data center CPU revenue to surge about 70% year‑over‑year in Q2, driven by AI compute demand.