TLDR
- AMD generated $10.3B in Q1 2026 sales, with data center operations emerging as the dominant revenue source
- Full-year 2025 saw AMD achieve record revenues of $34.6B, including $16.6B from data center operations
- Qualcomm delivered $10.6B in Q2 2026 revenues, though smartphone chips remain the core business at $6.93B
- While Qualcomm expands in automotive ($959M) and IoT segments ($1.58B), its mobile-centric reputation persists
- Analyst sentiment favors AMD with a $385.86 average target price compared to Qualcomm’s $172.40
Two semiconductor powerhouses—AMD and Qualcomm—are presenting contrasting narratives to the investment community in 2026. One has positioned itself squarely in the data center revolution. The other continues fighting to demonstrate it’s more than a mobile chip supplier.
First quarter 2026 results from AMD showed revenues of $10.3 billion. The company achieved a 53% gross margin, producing $1.5 billion in operating income and $1.4 billion in net earnings.
Advanced Micro Devices, Inc., AMD
Executives emphasized that data center operations have become the company’s primary growth catalyst. Rising demand for CPUs and AI accelerators reflects enterprises deploying AI inferencing capabilities and agentic AI frameworks.
This performance continued a remarkable 2025 trajectory. AMD delivered unprecedented annual revenues of $34.6 billion, with data center sales alone contributing $16.6 billion. Annual operating income reached $3.7 billion.
While AMD maintains presence in PC processors, gaming hardware, and embedded systems, investor attention has decisively pivoted toward its server and AI infrastructure portfolio.
AMD’s Data Center Push
MarketBeat analysts assign AMD a Moderate Buy rating, comprising 30 Buy recommendations and 2 Strong Buy ratings. The consensus price target stands at $385.86.
The investment thesis is clear-cut. AMD continues capturing contracts from major cloud service providers and enterprises allocating significant capital to AI infrastructure. The challenge lies in elevated expectations and fierce competition in premium AI computing.
Qualcomm’s recent financial disclosure presents a contrasting picture. The chipmaker reported fiscal Q2 2026 revenues of $10.6 billion, with non-GAAP diluted earnings per share of $2.65.
Handset components generated $6.93 billion of total revenues. Automotive chip sales reached $959 million, while IoT contributed $1.58 billion.
Qualcomm’s Push Into New Markets
Qualcomm has achieved meaningful expansion beyond mobile devices. Growth areas include automotive semiconductors, AI-enabled PCs, edge computing platforms, and industrial applications.
Yet smartphone chips continue dominating its revenue composition. Consequently, markets aren’t valuing Qualcomm as an AI infrastructure play comparable to AMD’s positioning.
Reuters coverage indicated that Qualcomm’s forward guidance underwhelmed investors, despite management commentary about improving supply chain conditions. Short-term market sentiment remains closely linked to handset market dynamics.
MarketBeat data shows 28 analysts tracking Qualcomm with a consensus price target of $172.40. Recent trading around $206.06 positions the stock above analyst expectations.
Qualcomm maintains a Moderate Buy consensus, though the outlook appears less decisive than AMD’s.
The valuation divergence between these companies ultimately reflects strategic clarity. AMD maintains direct exposure to surging AI infrastructure investments. Qualcomm possesses expansion potential but must demonstrate its emerging businesses can meaningfully offset smartphone dependence.
Qualcomm’s automotive segment generated $959 million in the latest quarter, while IoT operations contributed $1.58 billion based on most recent available data.
