AMD Posts Record Q2 Revenue as AI Data Center Business More Than Doubles

Advanced Micro Devices (AMD) reported record second-quarter revenue and sharply higher profit on Tuesday, driven by surging demand for its data center processors and AI accelerators.

AMD reported revenue of $11.5 billion for the quarter ended June 27, 2026, up 50% from a year earlier, while GAAP net income climbed 163% to $2.3 billion. Diluted earnings per share rose to $1.38, and non-GAAP earnings reached $1.66 per share, topping Wall Street projections. Gross margin expanded to 54% on a GAAP basis and 56% on a non-GAAP basis.

“We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year,” CEO Lisa Su said in a statement. She added that AMD is entering the second half of the year with “strong momentum” as demand for its EPYC server processors accelerates, Instinct AI deployments scale and its new Helios rack-scale AI systems begin ramping.

The company’s Data Center segment remained the primary source of revenue, generating $6.7 billion, a 107% increase from a year ago and accounting for roughly 58% of total company revenue. Growth was fueled by strong demand for fifth-generation EPYC processors and Instinct GPUs deployed in AI training and inference clusters by cloud service providers and enterprise customers.

AMD’s Client business also posted solid gains, with revenue rising 23% year over year to $3.1 billion. AMD’s Ryzen processors are very popular with gamers and were first to market with AI processing. The Embedded segment grew 19% to $977 million, while the Gaming business declined 31% to $779 million, primarily due to lower semi-custom chip sales for game consoles.

The results reflect AMD’s continued transition into a data center and AI hardware provider. It continues to challenge Nvidia’s dominance in AI accelerators. Last month, AMD announced a series of high-profile partnerships, including expanded deployments with Microsoft, Anthropic, Meta, and Cerebras, aimed at accelerating adoption of its Instinct MI450 series GPUs and Helios rack-scale AI platform.

Its biggest weakness remains the gaming industry, where it was once at least competitive with NVIDIA. Its GPU technology is being used more for AI accelerators than gaming, which is also happening with NVIDIA. But NVIDIA is also dominating in the gaming space as well, and AMD’s share of the market is shrinking.

For the third quarter, AMD projects revenue will be approximately $13 billion, plus or minus $300 million, implying roughly 41% year-over-year growth at the midpoint. The company expects non-GAAP gross margin to remain around 56%, supported by continued strength in its data center business and increasing shipments of AI products.

AMD is running second to Intel in the CPU space, and second to NVIDIA in the GPU and AI accelerator space, but it is still a strong, competitive company putting up serious competition to the industry leaders and bears no resemblance to the train wreck that it was a decade ago.