AMD Q2 Data Center Revenue Doubles, AI Chip Business Rapidly Catching Up to NVIDIA, Stock Price Performs Poorly After Hours

BlockBeats News, August 5th, AMD announced its second quarter 2026 financial results. The data shows that the company's data center business revenue reached $6.72 billion, a year-over-year increase of 107% and a quarter-over-quarter increase of about 15.6%, becoming a major driver of performance growth.

AMD's total revenue for the second quarter was $11.54 billion, a 50% year-over-year increase, reaching a historical high and surpassing the market's expectation of $112.8 billion; adjusted earnings per share were $1.66, exceeding analysts' expectations of $1.62.

Looking ahead to the third quarter, AMD expects revenue of around $13 billion, with a fluctuation of $300 million, higher than the market's expectation of $12.52 billion; the estimated adjusted gross margin is around 56%.

In terms of its AI business, AMD is accelerating its challenge to NVIDIA's leading position in the AI chip market. The company's CEO, Lisa Su, said that the second-generation Helios AI server, equipped with the MI455X accelerator and TSMC's 'Venice' processor, has been fully deployed and is expected to begin shipping in the coming months. It is reported that AMD will start delivering related AI servers to Meta and OpenAI at the end of this quarter.

However, after the financial report was released, AMD's stock price fell more than 9% in after-hours trading. The market believes that despite the company's strong performance and the stock price doubling year-to-date, investors are expecting higher growth prospects in the AI business and stronger guidance.

Additionally, AMD's gaming business saw a 31% year-over-year decline in second-quarter revenue to $7.79 billion, mainly due to decreased sales of Xbox Series X/S, PS5, and Steam Deck, as well as component supply constraints.