How to Trade AMD After Q1 2026 Earnings
May 25, 2026 10:31
Founded in 1969 as a Silicon Valley start-up, Advanced Micro Devices (NASDAQ: AMD) is a global semiconductor company that designs high-performance processors and graphics chips used across data centres, personal computers, gaming consoles, and embedded systems.
Its products include the EPYC server processors, Instinct graphics processing units (GPUs) for AI workloads, Ryzen desktop and laptop processors, Radeon graphics cards, and a range of chips for industrial and embedded applications.
The company recently reported its first-quarter 2026 results. Here is a closer look at its performance and what analysts are forecasting for the stock.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
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AMD’s Q1 2026 Earnings Performance Summary
Key Takeaways
- Total revenue reached $10.25 billion, up 38% year-on-year (YoY). Revenue growth was driven by surging demand for AI infrastructure, with the Data Center segment now the primary engine of both revenue and earnings. Chief Financial Officer and treasurer Jean Hu noted that the quarter delivered "accelerating revenue growth, earnings expansion and record quarterly free cash flow."
- On a non-GAAP basis, gross margin, the percentage of revenue remaining after the cost of production, expanded to 55%, up from 54% in the same period a year ago.
- Non-GAAP operating income rose 43% YoY to $2.5 billion, and non-GAAP net income grew 45% YoY to $2.3 billion.
- Free cash flow, the cash the business generates after funding its own capital expenditure, reached $2.6 billion for the quarter, described by management as a record. This compares with $727 million in Q1 2025, representing a more than threefold increase YoY.
- Performance across AMD's three segments was broadly positive:
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- Data Center posted revenue of $5.8 billion, up 57% YoY, driven by strong demand for EPYC processors and the continued ramp-up of Instinct GPU shipments. This segment is now the largest contributor to AMD's revenue.
- Client and Gaming, which covers Ryzen PC processors, Radeon graphics cards, and semi-custom chips used in gaming consoles, generated $3.6 billion in revenue, up 23% YoY.
- Embedded, which includes processors and programmable chips for industrial, communications, and edge computing applications, contributed $873 million in revenue, up 6% YoY, as demand strengthened across several end markets.
- On the outlook, management guided for second-quarter 2026 revenue of approximately $11.2 billion (± $300 million), implying YoY growth of approximately 46% and a quarter-on-quarter increase of approximately 9%. Non-GAAP gross margin for Q2 is expected to be approximately 56%.
Source: AMD Q1 2026 Press Release
AMD’s 12-Month Analyst Stock Price Forecast
According to 36 Wall Street analysts, polled by TipRanks, offering a 12-month stock price forecast for AMD over the past 3 months:
- Buy Ratings: 28
- Hold Ratings: 8
- Sell Ratings: 0
- Average Price Target: $461.38
- High Price Target: $625.00
- Low Price Target: $250.00
Trading Strategy Example: Advanced Micro Devices Inc.
The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions. An example trading idea for the AMD share price could be as follows:
Remember, markets are volatile, and AMD’s share price can fluctuate and may even trend lower. While AMD reported strong quarterly results, factors such as product transitions, pricing dynamics, and changes in enterprise spending may influence financial performance over time.
It is also worth noting that AMD's share price had already risen significantly ahead of the results, gaining more than 100% in 2026 at the time of writing, which could lead to some near-term profit-booking despite solid operational performance.
How to Buy AMD Stock in 4 Steps
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- Input your entry, stop-loss and take profit levels in the trading ticket.
Do You See the AMD Stock Price Moving Differently?
If you believe there is a higher chance that the share price of AMD will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.
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