After AMD's Blowout Earnings Report, Is This AI Stock About to Enter the $1 Trillion Club?

2 days ago 4

Harsh Chauhan, The Motley Fool

Thu, May 14, 2026 astatine 8:05 AM CDT 5 min read

Advanced Micro Devices (NASDAQ: AMD) has agelong played 2nd fiddle to Nvidia successful the artificial quality (AI) spot market. However, its latest quarterly study suggests that it is gradually becoming a cardinal subordinate successful the AI infrastructure ecosystem.

AMD's information halfway graphics processing units (GPUs) are present experiencing beardown lawsuit demand. What's more, the company's server cardinal processing portion (CPU) concern is besides taking off, driven by the maturation successful AI inference workloads. In fact, AMD is turning retired to beryllium 1 of the champion ways to capitalize connected the proliferation of AI, arsenic it is well-positioned to payment from the technology's adoption crossed aggregate applications.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Let's instrumentality a person look astatine AMD's first-quarter 2026 results (which were released connected May 5) and cheque wherefore this semiconductor banal is poised for much gains.

Image source: AMD.

AMD's maturation complaint is picking up acknowledgment to AI

AMD's Q1 gross accrued 38% twelvemonth implicit twelvemonth to $10.25 billion, portion adjusted net changeable up 43% twelvemonth implicit twelvemonth to $1.37 per share. Analysts would person settled for $1.29 successful net per stock connected gross of $9.89 billion. However, a 57% leap successful AMD's information halfway gross helped it crush Wall Street's expectations.

AMD notes that it saw stronger-than-expected request for some its Epyc server CPUs and Instinct GPUs successful information centers. Importantly, request for these chips is poised to grow. That's due to the fact that Meta Platforms is going to deploy up to 6 gigawatts (GW) of AMD's Instinct information halfway GPUs. Even better, AMD says that Meta volition beryllium a "lead customer" for its sixth-generation Epyc server CPUs.

Meanwhile, large hyperscalers specified arsenic Amazon, Google, Microsoft, and Tencent person been expanding the fig of unreality instances powered by AMD's Epyc server processors. AMD absorption noted connected the net telephone that "inferencing and agentic AI are expanding the request for server CPU compute," which explains wherefore the institution present expects stronger maturation successful this segment.

AMD was expecting the server CPU marketplace to turn astatine an yearly complaint of 18% implicit the adjacent 3 to 5 years. However, it has astir doubled that estimation and present sees the server CPU marketplace increasing astatine implicit 35% a year, generating $120 cardinal successful yearly gross successful 2030. Importantly, AMD has been gaining stock successful server CPUs successful caller quarters, controlling 36% of this marketplace successful Q4 2025, up from 27% successful the year-ago period.

Read Entire Article