AMD's revenue climbs 50% and data center sales doubled, but the stock is down
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- AMD reported Q2 revenue of $11.54B and adjusted EPS of $1.66, beating LSEG consensus estimates of $11.28B and $1.62, with overall revenue up 50% from $7.69B a year ago
- AMD's Data Center segment posted $6.7B in sales, up 107% year-over-year, driven by Epyc CPU and Instinct GPU demand
- AMD's stock slumped in extended trading despite the earnings beat, even as shares have nearly tripled over the past year on AI chip optimism
- AMD guided Q3 revenue to approximately $13B (±$300M), above LSEG's $12.52B consensus but below some analyst expectations of $14B
- AMD raised its 2028 semiconductor TAM forecast to $2T, with AI accelerators now projected at $1.4T — up from a prior estimate of $500B by 2028
- Helios, AMD's first rack-scale AI system combining its CPUs, GPUs, and networking chips, begins shipping this quarter to Meta, OpenAI, and Oracle, with ramp expected in Q4
- CEO Lisa Su told analysts data center sales are expected to double in 2027 and server revenue will rise more than 80% in the second half of fiscal 2026, with Epyc gaining CPU market share against Intel across AWS, Microsoft, Google, and Oracle
Why it matters: AMD's data center business more than doubled and it raised its AI accelerator TAM to $1.4T by 2028, yet the stock sold off because Q3 guidance of ~$13B fell short of the $14B some bulls wanted — the clearest sign that the bar for AMD's AI story is now set by Helios shipments to Meta, OpenAI, and Oracle against Nvidia's full-stack systems.
