AMD Q2 Earnings Beat Expectations with Record $11.5B Revenue, Data Center Sales Double; Stock Falls 8% After Hours

Advanced Micro Devices reported second-quarter revenue of 11.5 billion dollars on Tuesday, August 4, a 50 percent increase from 7.69 billion dollars a year earlier and a company record, driven by surging demand for its data center processors and AI accelerators. Non-GAAP earnings per share of 1.66 dollars beat the 1.55 dollar consensus by 7 percent, while GAAP diluted EPS came in at 1.38 dollars. Data center segment revenue climbed 107 percent year-over-year to 6.7 billion dollars and accounted for 58 percent of total company revenue, reflecting strong demand for EPYC CPUs and Instinct GPUs. Client segment revenue rose 23 percent to 3.1 billion dollars, while gaming revenue fell 31 percent to 779 million dollars due to lower semi-custom demand. For the third quarter, AMD guided for revenue of 13 billion dollars at the midpoint, above the 12.5 billion dollar consensus. Despite the beat and raise, AMD stock fell more than 8 percent in after-hours trading as investors assessed whether the company's guidance and competitive positioning justify its steep valuation relative to industry leader Nvidia. The company announced it will start shipping Helios, its first rack-scale AI system combining CPUs, GPUs, and networking chips, to customers including Meta, OpenAI, and Oracle in the third quarter, with shipments ramping in the fourth quarter. CEO Lisa Su said on the earnings call that the company expects data center sales to double again in 2027 and server revenue to grow more than 80 percent on an annual basis, underscoring the ongoing AI infrastructure build-out.