--- title: "AMD's revenue soared by 50%, and its data center business doubled, but it was sold off due to growth expectations that failed to \"impress\" the market" type: "News" locale: "en" url: "https://longbridge.com/en/news/294885348.md" description: "AMD announced its Q2 fiscal report for the fiscal year 2026, with revenue of $11.54 billion, a year-on-year increase of 50%, and a net profit of $2.3 billion, both exceeding expectations. The data center business revenue doubled to $6.72 billion, becoming the main driver. However, due to the third-quarter revenue guidance being only slightly above consensus and not meeting investors' expectations for a \"super explosion,\" the stock price fell by more than 9% in after-hours trading" datetime: "2026-08-05T02:51:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294885348.md) - [en](https://longbridge.com/en/news/294885348.md) - [zh-HK](https://longbridge.com/zh-HK/news/294885348.md) generator: "portal-rs" --- # AMD's revenue soared by 50%, and its data center business doubled, but it was sold off due to growth expectations that failed to "impress" the market According to Zhitong Finance APP, despite delivering a revenue report with a year-on-year increase of 50%, AMD (AMD.US) saw its stock price plummet significantly in after-hours trading. On Tuesday after the market closed in Eastern Time, AMD announced its second-quarter financial report for fiscal year 2026, with overall performance exceeding market expectations. However, the revenue guidance for the third quarter was only slightly above consensus, far from the "super explosion" some investors had hoped for, leading to a drop of over 9% in its stock price during after-hours trading. Data shows that for the second quarter ending June 27, AMD achieved revenue of $11.54 billion, a 50% year-on-year increase, surpassing analysts' average expectation of $11.28 billion. Net profit recorded was $2.3 billion, translating to a diluted earnings per share of $1.38, a significant rise from $872 million (or $0.54) in the same period last year. Excluding certain items, the adjusted earnings per share was $1.66, also better than the market expectation of $1.62. **Data Center as the Absolute Engine, Dual-Line Breakthrough in CPU and GPU** The core driving force behind the explosive performance comes from the data center business. In this quarter, sales in this sector soared 107% year-on-year, reaching $6.72 billion, exceeding analysts' expectations of $6.48 billion. AMD attributes this to strong sales of central processing units (CPUs) and graphics processing units (GPUs). ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260805/1785886166384335.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Server CPUs represented by the EPYC brand are continuously capturing market share from old rival Intel (INTC.US). CEO Lisa Su revealed in a conference call that major cloud customers, including Amazon (AMZN.US) AWS, Microsoft (MSFT.US) Azure, Google (GOOGL.US) Cloud, and Oracle (ORCL.US), are continuously expanding the deployment of EPYC in their internal infrastructure and public cloud services. With the rise of applications like AI agents, CPUs, as key general-purpose chips for running AI workloads, have regained significant attention in data centers, opening a second front for AMD in the AI era. In the AI accelerator (GPU) battlefield, AMD continues to position itself as the strongest challenger to NVIDIA (NVDA.US). As global tech giants and governments rush to expand AI data centers, AMD is shifting from merely selling chips to providing complete rack-level systems that integrate CPUs, GPUs, and networking devices, directly competing with similar products from NVIDIA. **Upgrading AI Systematic Layout: Helios Delivery Imminent, Securing Major Order from Anthropic** One of the biggest highlights of this financial report is that AMD's first rack-level AI system, "Helios," is about to begin delivery. Lisa Su stated at the AMD AI event held in July that the second-generation Helios AI server—equipped with the MI455X AI accelerator and TSMC (TSM.US) manufactured "Venice" processor—has entered full production and will be shipped in the coming monthsAMD added on Tuesday that it expects shipments of Helios to gradually increase in the fourth quarter, with initial customers including Meta (META.US), OpenAI, and Oracle, marking AMD's official entry into the "full system" competition in the AI infrastructure sector. To secure long-term demand, AMD has recently made significant investments in customers and infrastructure resources. About two weeks ago, the company announced an agreement with AI star company Anthropic, which is expected to go public, to sell AI servers worth billions of dollars. These servers are planned to be deployed starting in early 2027, powered by MI450 chips with a maximum capacity of up to 2 gigawatts. AMD will also invest up to $5 billion in Anthropic based on deployment milestones. Additionally, AMD has secured up to 2.5 gigawatts of data center capacity through Core Scientific (CORZ.US), which is transitioning to cryptocurrency mining, and has obtained warrants for the company's stock. These initiatives undoubtedly pave the way for the future scale expansion of its AI business. **Forward guidance "not high enough," stock price under pressure at high levels** However, the trigger for the stock price decline was AMD's third-quarter performance guidance. The company expects third-quarter revenue to be approximately $13 billion, with a fluctuation of $300 million. Although the median is significantly higher than the average analyst expectation of $12.52 billion, some Wall Street estimates already exceeded $13 billion, with the highest reaching $14 billion. Clearly, against the backdrop of AI investment enthusiasm pushing the stock price to double within the year, the market expects a more "explosive" growth blueprint. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260805/1785885996246056.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) In addition, AMD expects an adjusted gross margin of approximately 56% for the third quarter, which is basically in line with expectations. Investors are concerned that factors such as a weak PC market, tight supply of memory chips, and rising prices may suppress future profit margins. The financial report shows that revenue from the client and gaming segment, covering PCs and gaming consoles, grew by 6% year-on-year to $3.84 billion in the second quarter, while the embedded business, which includes industrial-use chips, grew by 19% year-on-year to $977 million. Lisa Su admitted that although the PC market performed better than expected in the first half of the year, it is still anticipated that the market will decline in the second half. **Supply bottlenecks and outlook** AMD is also facing industry-wide supply constraints. It is highly dependent on TSMC, the world's largest chip foundry, and the latter's tight advanced packaging capacity has become a key bottleneck limiting AMD's AI chip shipments. However, company executives are quite optimistic about the medium to long-term outlook. Chief Financial Officer Jean Hu stated that data center sales are expected to accelerate further in the second half of 2026, driving overall revenue growth and continued profit expansion. Lisa Su explicitly predicted that the company's data center revenue will "double again" by 2027, and that server revenue will grow by over 80% year-on-year in the second half of fiscal year 2026. Earlier in July, AMD had raised its total market size expectation for the global semiconductor market to $20 trillion by 2028, with the AI accelerator market contributing $14 trillion, a significant upward revision from the previous forecast of $5 trillionDr. Lisa Su stated, "Whether it's accelerators or CPUs, market demand far exceeds our previous expectations." Emarketer analyst Jacob Bourne commented, "AMD is evolving from a chip challenger to a competitor in the AI infrastructure space." However, this also means that the company, like NVIDIA and large-scale cloud providers, has entered a phase where it must continuously prove that its substantial AI investments can translate into accelerated returns. During the conference call, analysts repeatedly questioned the detailed path to achieving the goal of doubling by 2027, but Dr. Su only responded that growth could ultimately "far exceed 100%," which may also reflect that after the market has assigned it a high valuation, AMD must take every step more "brilliantly" than "eye-catching." "The specific numbers cannot be disclosed," but she also pointed out that in the long term, the company is expected to surpass its previously set targets of 35% annual revenue growth and $20 earnings per share ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [AMDW.US](https://longbridge.com/en/quote/AMDW.US.md) - [AMDG.US](https://longbridge.com/en/quote/AMDG.US.md) - [AMDY.US](https://longbridge.com/en/quote/AMDY.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [DAMD.US](https://longbridge.com/en/quote/DAMD.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [CORZ.US](https://longbridge.com/en/quote/CORZ.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [CORZZ.US](https://longbridge.com/en/quote/CORZZ.US.md) - [CORZW.US](https://longbridge.com/en/quote/CORZW.US.md) ## Related News & Research - [AMD May Have Found Its Next Big AI Growth Engine](https://longbridge.com/en/news/296950025.md) - [11:00 ETGIGABYTE se asocia con AMD para lanzar el paquete de juegos «Onimusha: Way of the Sword»](https://longbridge.com/en/news/297064759.md) - [Chip Stock Favorite Adds Another Bull Note to Its Collection](https://longbridge.com/en/news/296929583.md) - [AMD Is Building an AI ‘Escape Hatch’ From Nvidia. 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