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AMD's Q2 Revenue Jumps 50% to $11.5 Billion Driven by Data Center Growth
Key points
- Overall Q2 revenue increased 50% year-over-year to $11.5 billion.
- Data Center revenue more than doubled, up 107% to $6.7 billion.
- Gaming revenue fell 31% year-over-year to $779 million.
- Client revenue increased 23% due to Ryzen processor sales.
- AMD's stock declined despite beating analyst expectations.
Overall Financial Performance
Advanced Micro Devices (AMD) announced its second-quarter earnings, reporting a total revenue of $11.5 billion. This represents a 50% increase compared to the same period last year and a 13% rise quarter-over-quarter. The company's CFO, Jean Hu, stated that the data center business accounted for 58% of the total revenue for the quarter.
Data Center Segment Drives Growth
The Data Center unit was the primary driver of AMD's revenue growth, with sales reaching $6.7 billion. This marks a 107% increase year-over-year, more than doubling from $3.2 billion in the same period last year and up from $5.8 billion in Q1. AMD attributed this growth to strong demand for AI capacity, as well as sales of its central processing units (CPUs) like Epyc and graphics processing units (GPUs) such as Instinct.
CEO Lisa Su noted that "AI is driving a significant expansion in demand for compute across all of our markets," positioning AMD to capture this expanding opportunity.
Gaming Revenue Decline
In contrast to the data center segment, AMD's gaming revenue experienced a 31% decline year-over-year, falling to $779 million. This decrease was attributed to lower semi-custom revenue and higher industry-wide component costs, which contributed to increased graphics card prices and reduced overall demand. The slowdown in sales for consoles like the Xbox Series X/S, PS5, and Valve's Steam Deck also played a role.
AMD had previously anticipated a 20% decline in gaming revenue for the second half of the year, a forecast reaffirmed in the Q2 earnings call.
Client Segment Performance
While gaming revenue declined, AMD's overall PC and gaming business revenue saw a 6% increase compared to last year. The Client segment specifically reported a 23% increase in revenue, driven by sales of Ryzen processors.
Stock Market Reaction
Despite beating analyst expectations for both adjusted EPS ($1.66 vs. $1.62 expected) and revenue ($11.54 billion vs. $11.28 billion expected), AMD's stock declined in extended trading and premarket. Some analysts had more optimistic estimates, and investor enthusiasm for AI chip growth reportedly waned, leading to an 8.2% drop in premarket trading.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
AMD's stock fell 8.2% in premarket trading despite reporting second-quarter revenue of $11.54 billion, surpassing analyst expectations of $11.28 billion. The decline occurred because investor enthusiasm for AI chip growth waned, and earnings, while ahead of consensus, missed more optimistic estimates.
AMD reported Q2 2026 revenue of $11.5 billion, a 50% year-over-year increase, driven by a 107% rise in data center revenue. However, gaming revenue decreased by 31% due to lower semi-custom revenue and higher component costs impacting graphics card prices and demand.
AMD reported second-quarter revenue of $11.54 billion, a 50% increase year-over-year, with data center sales doubling to $6.7 billion. Despite beating analyst expectations for both EPS and revenue, AMD's stock declined in extended trading, possibly due to some analysts expecting higher guidance for the current quarter.
AMD's data center revenue more than doubled year-over-year to $6.7 billion in its latest earnings report, driven by AI demand. This growth contrasts with a 31% decline in gaming revenue, which reached $779 million due to price hikes and component shortages affecting console sales.