AMD more than doubles its data center revenue, but its stock falls on concerns over rising capex
After seeing its stock rise more than 7% during the regular trading session earlier today, Advanced Micro Devices Inc. saw all of those gains wiped out in extended trading after narrowly beating expectations in its latest financial results. The chipmaker reported second-quarter adjusted earnings of $1.66 per share, edging past Wall Street’s forecast of $1.62 […] The post AMD more than doubles its…
Advanced Micro Devices (AMD) more than doubled its data center revenue during the second quarter, with sales increasing 107% to $6.7 billion. The company beat analyst expectations with adjusted earnings of $1.66 per share and revenue reaching $11.54 billion, surpassing the $11.28 billion target. AMD's data center unit contributed significantly to this growth, driven by sales of both its GPUs and EPYC CPUs.
However, the stock price fell in extended trading due to concerns over rising capital expenditures. AMD forecast revenue of around $13 billion for the current quarter, exceeding the Street's $12.52 billion target. The company also announced the launch of its next-generation AMD Instinct MI400 Series GPUs and sixth-generation AMD EPYC CPUs for AI applications, as well as its new Helios AI rack system, marking its entry into the data center systems market.
AMD's CEO, Lisa Su, stated that the company anticipates its data center unit sales to double by 2027, with server revenue growing more than 80% annually in the second half of fiscal 2026. Despite this strong performance in the data center segment, AMD's client and gaming segment, which sells GPUs and CPUs for consumer devices, only saw a 6% revenue increase.
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