tech
AMD's revenue climbs 50% and data center sales doubled, but the stock is down
AMD's data center unit is driving the company's growth, up 107% over last year.
TL;DR
- AMD's Q2 adjusted EPS was $1.66, beating expectations of $1.62.
- Q2 revenue reached $11.54 billion, exceeding estimates of $11.28 billion and showing a 50% year-over-year increase.
- The Data Center segment saw sales of $6.7 billion, a 107% annual increase, driven by CPU and GPU sales.
- AMD expects approximately $13 billion in revenue for the current quarter.
- The company forecasts the semiconductor industry to be worth $2 trillion annually by 2028, with $1.4 trillion from AI accelerators.
- AMD will begin shipping its first rack AI system, Helios, this quarter to companies like Meta, OpenAI, and Oracle.
- Data Center sales are expected to accelerate in the second half of 2026.
- The company's CPU business has gained market share from Intel.
- Client and gaming segment revenue grew 6% year-over-year to $3.8 billion.
- Capital expenditures increased significantly to $808 million in the quarter.