Advanced Micro Devices reported second-quarter earnings on Tuesday that beat expectations, but the stock slumped in extended trading.
Here’s how the chipmaker did versus LSEG consensus estimates for the quarter ended June 27:
- EPS: $1.66, adjusted, versus $1.62 expected
- Revenue: $11.54 billion versus $11.28 billion expected
Overall, AMD revenue climbed 50% from $7.69 billion a year ago, a sign of the company’s central position in the market for artificial intelligence chips.
AMD’s Data Center unit is what is driving the company’s growth. Data Center sales were $6.7 billion, up 107% on an annual basis, which the company attributed to central processing unit and graphics processing unit sales.
AMD’s stock has nearly tripled over the past year, both on optimism that its AI chips, branded Instinct, will take a meaningful amount of a growing market from Nvidia, as well as the resurgence of the CPU — which AMD sells under the brand name Epyc — which AI experts now say is an essential component for running agents.
AMD said it expects about $13 billion in revenue for the current quarter, plus or minus $300 million, versus LSEG expectations of $12.52 billion. Some analysts had been looking for guidance as high as $14 billion.
Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), holds up the AMD Ryzen AI Halo, an AI developer platform, during an AMD news conference ahead of the annual Consumer Electronics Show in Las Vegas, Nevada, on Jan. 5, 2026.
Caroline Brehman | AFP | Getty Images
In July, AMD raised its expectations for the size of the semiconductor industry, saying it could be worth $2 trillion per year by 2028. The chipmaker sees $1.4 trillion of that coming from AI accelerators, or GPUs, up from a previous estimate of $500 billion by 2028.
The company will also start shipping Helios, its first rack AI system, this year to companies like Meta, OpenAI, and Oracle. It’s AMD’s first rack-scale system, which more directly competes with Nvidia systems, not just its chips.
“We expect Data Center sales to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion,” AMD CFO Jean Hu said in a statement.
AMD’s business selling CPUs and GPUs for consumer devices like laptops and consoles, called client and gaming, was only up 6% year-over-year to $3.8 billion. Its embedded segment, which includes chips for industrial purposes, grew 19% on an annual basis to $977 million.
AMD reported $2.3 billion in net income, or $1.38 per diluted share, versus $872 million in net income, or 54 cents per diluted share in the year-ago period.
