Overview
- AMD reported record second-quarter revenue of $11.54 billion on Tuesday, with Data Center sales more than doubling to about $6.72 billion and now making up roughly 58% of company revenue.
- The company guided third-quarter revenue to about $13 billion and said it expects Data Center sales to more than double in 2027, while announcing that its Helios rack-scale AI system is in full production and slated to begin customer shipments late in the third quarter.
- Hours after the report the stock fell sharply as investors reacted to a bigger-than-expected jump in capital spending, with quarterly capex at $808 million and free cash flow declining to $1.56 billion.
- AMD warned that supply constraints for advanced packaging and scarce HBM4 memory from partners such as TSMC could limit how quickly customer deployments ramp, even as it has secured large commitments from OpenAI, Anthropic, Microsoft and Core Scientific.
- The results underline AMD’s strategic shift from consumer chips to integrated AI systems that bundle CPUs, GPUs and networking, and the market will now focus on Helios deployments, margin trends and cash-flow timing as proof that the company can scale against Nvidia.