AMD reported strong first-quarter results, with revenue up 38% to $10.3 billion and earnings exceeding Wall Street expectations.

Its data center segment grew 57%, though profit margins came in slightly below forecasts.

The company issued upbeat second-quarter guidance, helping drive its stock higher in after-hours trading.

CEO Lisa Su highlighted strong demand for AI computing and projected significant growth in AMD’s AI data center business by 2027, Barron’s has reported.

Overall, the results underscored AMD’s strengthening position as a major competitor to Nvidia in the AI chip market.