AMD Posts Record Quarter as Data Center Turns Profitable

Overview

• The company reported record second-quarter revenue of $11.54 billion, a 50% year‑over‑year increase, and the data center business delivered a $2.1 billion operating profit.
• Management guided third‑quarter revenue to $12.7 billion–$13.3 billion and raised its long‑term CPU total addressable market to $220 billion by 2030.
• Wall Street responded with broad upgrades and higher targets, leaving a consensus Strong Buy and average price targets well above current levels, while institutional buying increased.
• Analysts warned that adoption of high‑capacity HBM4 memory and rising MI450 accelerator volumes could raise bill‑of‑materials and compress gross margins, potentially forcing higher rack prices to protect profitability.
• Insider sales of roughly $109.5 million have drawn investor caution, and the company’s ability to sustain margin execution and win large server customers will determine whether the rally is durable.