Advanced Micro Devices announced second-quarter earnings results on Tuesday that surpassed analyst expectations, though the company’s stock price retreated during after-hours trading. The chipmaker’s overall revenue reached $7.69 billion, representing 50% growth compared to the year-ago period, reflecting the company’s strengthened position in the artificial intelligence chip sector.
The Data Center division emerged as the primary growth engine for AMD. Sales in this segment totaled $6.7 billion, marking 107% year-over-year growth driven by central processing unit and graphics processing unit sales. The company attributed this expansion to increased demand for AI infrastructure components alongside renewed interest in traditional processors for AI applications.
AMD’s stock has appreciated nearly threefold over the preceding year, supported by market enthusiasm regarding the company’s Instinct-branded AI chips potentially capturing meaningful share from competitor Nvidia, as well as resurgence in demand for AMD’s Epyc CPU line, which industry experts have identified as essential infrastructure for operating AI agents. The company disclosed expectations for approximately $13 billion in revenue for the current quarter, with a range of plus or minus $300 million, compared to LSEG consensus estimates of $12.52 billion.
Looking ahead, AMD announced plans to commence shipments of Helios, its inaugural rack-scale AI system, during the current year to customers including Meta, OpenAI, and Oracle. The company also raised its projections for the global semiconductor market opportunity, projecting a $2 trillion annual value by 2028, with $1.4 trillion attributed to AI accelerators. AMD’s other segments showed more moderate expansion, with client and gaming revenue increasing 6% to $3.8 billion, while the embedded segment grew 19% to $977 million. Net income climbed to $2.3 billion, or $1.38 per diluted share, compared to $872 million, or 54 cents per diluted share, in the prior-year quarter.
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