Overview
- AMD reported record second‑quarter revenue of $11.54 billion and adjusted EPS of $1.66, beating Street estimates and reflecting a 50% year‑over‑year increase in sales.
- Data‑center sales jumped to about $6.7 billion, rising roughly 107% year over year, and management says it expects the data‑center business to more than double by 2027.
- The company began shipping its Helios rack‑scale AI system to major customers including Meta, OpenAI, and Oracle, with management saying demand exceeded initial expectations and a wider ramp is planned for the fourth quarter.
- Investors reacted to the quarter with concern over higher capital expenditures — Q2 CapEx rose to about $808 million — and the stock fell even as analysts raised multi‑year price targets.
- Key risks to the ramp include supplier constraints for advanced packaging and high‑bandwidth memory and the pace at which hyperscaler commitments convert into booked, margin‑generating deployments as AMD scales its CPU+GPU strategy.