AMD’s Server Revenue Share Hits 46% as Shareholders Back Growth Plan and Meta Expands Instinct Orders

AMD shareholders approve expanded equity compensation as Q1 revenue jumps 38% to $10.25B, datacenter sales surge 57%, and CEO Su doubles server TAM forecast to $120B by 2030.

Advanced Micro Devices’ shareholders gave the green light to expand the company’s equity compensation program by 65 million shares at Wednesday’s annual meeting, endorsing a strategy that leans heavily on the artificial-intelligence boom. The vote came as CEO Lisa Su unveiled a sharply raised long-term market forecast and fresh evidence that the chipmaker’s datacenter business is pulling ever further ahead of rival Intel.

The quarterly results for the period ended March 2026 painted a clear picture. Revenue jumped 38% to $10.25 billion, while adjusted earnings per share hit $1.37 — well above analyst expectations. The datacenter segment was the standout, growing 57% to $5.8 billion and now accounting for more than half of total company sales. That unit’s performance was fueled by EPYC server processors and accelerating shipments of Instinct graphics accelerators for AI workloads.

On the server-processor market, AMD captured 46.2% of global spending during the first quarter, a milestone that underscores a dramatic shift toward high-end silicon. By unit volume the company’s share is about 27%, meaning it is selling a smaller number of chips but commanding much higher prices. The premium positioning is paying off: adjusted gross margin reached 55%, compared with Intel’s 41%, and free cash flow tripled to more than $2.5 billion.

Su used the annual gathering to double the company’s market outlook for server processors, now projecting a total addressable market of $120 billion by 2030 — up sharply from a previous, less ambitious forecast. She attributed the upgrade to changing requirements in AI infrastructure, where conventional CPUs play an expanding role in data movement and task orchestration. For the current quarter, AMD guided for revenue of roughly $11.2 billion.

Meta Platforms is helping to validate that optimism. The social-media giant is deepening its partnership with AMD and plans to deploy Instinct GPUs for a datacenter buildout that could reach six gigawatts of power capacity. The focus will be on so-called “agentic AI” — autonomous systems designed for complex, multi-step tasks. Industry observers see the move as a vote of confidence in AMD’s next-generation rack-scale designs.

The stock has reflected that operational momentum, trading around €384 in European markets and up more than 264% over the past 12 months — some sources put the gain above 270%. The shares are within striking distance of their recent all-time high. Analysts have responded with target upgrades: KeyBanc set a price objective of $530, while Bernstein raised its to $525.

Not all the news from the annual meeting was about growth. Jon Olson stepped down from the board after declining to stand for re-election. Shareholders also ratified Ernst & Young as the company’s auditor and approved the increase in the equity compensation pool.

Looking ahead, AMD will host its “Advancing AI” event in San Francisco on July 23, 2026. The company is expected to unveil the next generation of Instinct accelerators and potentially provide details on its upcoming Zen 6 processor architecture. Analysts and investors will be watching closely for product roadmaps that can sustain the blistering pace of growth.

Su has set an ambitious target of annual revenue expansion above 35%. Hitting that number will depend on navigating headwinds that include heavy reliance on contract manufacturer TSMC, potential export restrictions, and tight availability of high-bandwidth memory chips. Those constraints will ultimately determine how much of that projected $120 billion server market actually lands in AMD’s books.