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AMD announced its financial results for the first quarter of 2026, reporting revenue of $10.3 billion, a year-over-year increase of 38%. Notably, its data center business performed exceptionally well, growing by 57% to reach $5.8 billion, a record high. Non-GAAP earnings per share stood at $1.37, up 43% year-over-year. Free cash flow soared by 253% to $2.57 billion, also setting a new record. During the earnings call, AMD's management doubled its forecast for the server CPU market size, raising it to over $120 billion, citing the increased CPU computing power demand driven by the development of inference and agent AI. Additionally, AMD provided a revenue guidance of approximately $11.2 billion for the second quarter, exceeding market expectations by around $500 million.
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