AMD revenue surges 50% to $7.69B, data center sales double

Advanced Micro Devices reported second-quarter earnings on August 4, 2026, that surpassed analyst expectations, yet its stock declined in extended trading. The chipmaker posted revenue of $7.69 billion, a 50% increase from the same period a year ago, according to LSEG consensus estimates for the quarter ended June 27.

AMD's Data Center unit drove the growth, with sales reaching $6.7 billion, up 107% year-over-year. The company attributed the surge to strong sales of its central processing units and graphics processing units, underscoring its expanding role in the artificial intelligence chip market.

The results highlight AMD's challenge in meeting lofty investor expectations, as the stock has nearly tripled over the past year on optimism about its AI Instinct chips and Epyc CPUs. Despite the revenue beat, the company's guidance for the current quarter fell short of some analyst projections, with AMD forecasting about $13 billion in revenue, plus or minus $300 million, compared to LSEG expectations of $12.52 billion and some estimates as high as $14 billion.

AMD's client and gaming segment, which sells CPUs and GPUs for consumer devices like laptops, grew only 6% year-over-year to $3.8 billion. Its embedded segment, including chips for industrial purposes, rose 19% to $977 million. The company reported net income of $2.3 billion, or $1.38 per diluted share, versus $872 million, or 54 cents per diluted share, in the year-ago period.

In July, AMD raised its forecast for the semiconductor industry, projecting it could reach $2 trillion annually by 2028, with $1.4 trillion from AI accelerators, up from a previous estimate of $500 billion. The company also plans to begin shipping Helios, its first rack-scale AI system, this year to customers including Meta, OpenAI, and Oracle, directly competing with Nvidia's systems.

AMD CFO Jean Hu stated that Data Center sales are expected to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion.