AMD's AI-Fueled Growth Outpaces Crypto Cycles
Advanced Micro Devices (AMD) recently released its Q1 2026 earnings report, exceeding analyst estimates in every category. Despite this impressive performance, AMD's stock price declined after hours of trading.
The company reported revenue of $10.3 billion, a 38% increase from the same quarter last year. Earnings per share reached $1.37, beating consensus estimates by around 9-10%. The data-center segment saw a remarkable surge in sales, growing 57% year-over-year to $5.8 billion.
This growth can be attributed to AMD's strategic pivot away from crypto-dependent revenue and toward the booming AI infrastructure market. The company has made significant strides in this area, including a multi-year deal with Core Scientific, one of North America's largest Bitcoin mining operations.
The partnership, which spans 15 years, involves converting Core Scientific's massive power infrastructure into AI compute capacity. Projected base revenue exceeds $14 billion, highlighting the immense potential for AMD's data-center business. The company's management has deliberately avoided betting on crypto cycles, instead focusing on the long-term growth of its core business.