AMD's data center revenue overtook Intel's again in Q1 2026. See the earnings, valuation and momentum numbers behind the shift.
AMD designs processors and AI accelerator chips that power cloud servers and data centers, competing directly against longtime rival Intel. And just out of curiosity about how far that rivalry has shifted, the first quarter of 2026 offers a clear answer: AMD's data center segment now generates more revenue than Intel's equivalent business, a reversal that would have seemed unlikely a decade ago.
In Brief
- AMD's data center revenue hit $5.8 billion in the first quarter, up 57% year over year, versus Intel's $5.1 billion, up 22%.
- AMD shares have gained more than 250% over the past year and trade around 59 times forward earnings.
- Intel stock fell about 21% in a single week on reports its 18A manufacturing process may not turn profitable until 2027.
- AMD posted adjusted EPS of $1.37 and GAAP EPS of $0.84, with gross margin above 50%.
- Intel remains the larger company overall, with over $50 billion in trailing revenue versus AMD's roughly $37 billion.
How AMD Took the Data Center Lead, and Just Out of Curiosity, Whether It Holds
AMD's total revenue climbed 38% to $10.3 billion in the quarter, with data center now standing as its largest and fastest growing division. That $5.8 billion figure includes both EPYC server processors and Instinct AI accelerators, so the crossover with Intel isn't purely a server chip story. Some of it reflects AMD's push into AI hardware, a market Intel has struggled to contest.
Even narrowing the comparison to server CPUs alone, AMD is closing ground. It now captures close to half of all server CPU revenue while shipping only about a third of the units, which suggests buyers are willing to pay more for its top tier chips rather than simply buying in bulk. Profitability backed up the growth story too: AMD earned $1.4 billion in net income on a GAAP basis, with margins comfortably above 50%.
Intel's Bigger, Slower, and Still Unprofitable Turnaround
Intel isn't standing still. Its data center and AI group brought in $5.1 billion, a 22% increase from a year earlier, and the company as a whole still outsells AMD by a wide margin on trailing revenue. Losing the data center crown matters more, not less, because Intel remains the larger enterprise by total sales.
The drag comes from elsewhere. Intel's foundry business, the manufacturing arm meant to close the gap with rivals like TSMC, pulled in less than $200 million from outside customers last quarter and lost money doing it. Shares dropped roughly 21% in a single week after reports surfaced suggesting the critical 18A manufacturing process might not reach profitable yield levels until 2027. That's a full year or more of additional waiting for a turnaround investors have already been promised more than once.
Valuation, Momentum and Yield: Comparing AMD and Intel
Price action alone tells part of the story. AMD stock has surged over 250% in the past year, a run that has pushed its valuation to about 59 times forward earnings, a level that already assumes continued strong execution. Intel, by contrast, trades at more than 100 times expected earnings, not because investors are optimistic, but because its near term profits are so depressed that the ratio balloons even on a modest share price.
Neither stock offers dividend income worth weighing heavily in this comparison right now, and neither looks statistically cheap on a simple earnings basis. The bull case for Intel rests on its data center revenue growing again and the possibility that 18A eventually becomes a genuine manufacturing edge rather than a persistent cost center. That would be a real value unlock for patient holders. The bear case is straightforward: Intel keeps missing its own turnaround timelines, and a stock that looks cheap on paper can stay cheap for years if the underlying business keeps disappointing.
For AMD, the bull case is that its data center engine, split between EPYC processors and Instinct accelerators, keeps compounding at the pace it just posted. The risk sits in the price. At nearly 59 times forward earnings, any slowdown in data center growth or AI demand could hit the stock harder than it would hit a more modestly valued peer.
What the Shift Means for Both Companies Going Forward
Line up the two businesses today and the contrast is plain. AMD is growing faster, earning more from data centers, and converting that growth into profit at healthy margins. Intel is cheaper on paper, but it's losing money overall, ceding server share, and waiting on a manufacturing process that keeps sliding further into the future. Whether Intel's foundry bet eventually pays off, and whether AMD's premium valuation can keep pace with its own growth, are the two questions that will decide if this shift in the data center hierarchy proves lasting or temporary.
Frequently Asked Questions
How to regain curiosity?
Regaining curiosity often comes from deliberately exposing yourself to new information, asking open ended questions, and giving yourself permission to explore topics without immediate practical payoff.
What triggers curiosity?
Curiosity is typically triggered by novelty, uncertainty, or a gap between what you know and what you want to know, such as an unexpected data point or surprising result.
How to develop curiosity?
Developing curiosity involves regularly asking follow up questions, seeking out unfamiliar subjects, and treating gaps in knowledge as prompts to investigate rather than skip past.
Is curiosity still active?
Curiosity remains active throughout life for most people, though it can fluctuate based on stress, routine, or lack of novel stimulation, and can be reawakened with new challenges.
What can curiosity lead to?
Curiosity can lead to deeper research, better decision making, and in cases like this one, a closer look at financial data that changes how an investor views two competing companies.
