We have generated optical pulses of 1.2 MW peak power and 0.6 ps duration using a 1060 nm band gain-switched laser diode pulse oscillator. Optical pulses are amplified by three-stage ytterbium-doped fiber amplifiers, and remarkable reductions of amplified spontaneous emission noise and temporal duration have been accomplished based on self-phase modulation in the middle-stage amplifier. After the main amplifier, optical pulses were temporally compressed by a grating pair, and this enabled generation of subpicosecond optical pulses with over 1 MW peak power.