Advanced Micro Devices posted record second-quarter revenue of $11.5 billion, a 50% jump from the same period last year, as its data center business more than doubled on surging demand for artificial intelligence computing hardware.
The chipmaker’s data center segment generated $6.7 billion in revenue, up 107% year-over-year, accounting for 58% of total company revenue. The division was fueled by strong sales of AMD EPYC server processors and Instinct AI accelerators as enterprises scramble to build out AI infrastructure.
‘We delivered an excellent quarter, with record revenue and profitability as data center revenue more than doubled year-over-year,’ said AMD chair and CEO Lisa Su on the company’s earnings call. She added that server revenue would rise more than 80% on an annual basis in the second half of fiscal 2026.
GAAP earnings per share came in at $1.38, while non-GAAP EPS reached $1.66, both beating analyst estimates. Gross margins held strong at 54% on a GAAP basis and 56% on a non-GAAP basis, reflecting the high-margin profile of data center products.
The client segment contributed $3.1 billion, up 23% year-over-year on solid Ryzen PC processor demand. However, gaming revenue fell 31% to $779 million as the console cycle matures. Embedded segment revenue grew 19% to $977 million.
Su guided third-quarter revenue to approximately $13 billion, signaling continued acceleration. The outlook reinforces AMD’s position as the leading alternative to Nvidia in the AI chip market, where demand continues to outstrip supply across the industry.
The results come amid a broader AI-driven semiconductor boom. Rival Nvidia has posted similarly explosive data center growth, while the global memory chip shortage driven by AI data center demand continues to squeeze consumer electronics availability.
Sources: AMD Investor Relations, Yahoo Finance, CNBC
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