Advanced Micro Devices posted second-quarter data center revenue of $6.718 billion, up 107% from a year earlier and equal to 58% of company-wide revenue. Total revenue reached $11.536 billion, and non-GAAP earnings per share came in at $1.66. Both figures set company records.
The market response went the other way. After the earnings release, AMD shares fell nearly 9% in after-hours trading, a move that looked out of step with the headline numbers.
Third-quarter guidance topped consensus averages
AMD said it expects third-quarter revenue of about $13 billion, with a variance of $300 million, and a non-GAAP gross margin of about 56%. Based on the figures cited in the report, that implies 41% year-over-year growth and 13% sequential growth.
Bloomberg’s compilation of analyst estimates put third-quarter revenue at roughly $12.5 billion, while LSEG’s figure was $12.52 billion. Both were below AMD’s guidance. Still, the report noted that some analysts had expected a number well above $13 billion, with forecasts reaching $14 billion, leaving part of the market underwhelmed.
Lisa Su set a 2027 target for data center growth
On the earnings call, Chair and CEO Lisa Su said AMD wants data center revenue to grow by more than 100% by 2027. When analysts asked for a more exact figure, she added that the increase could be “well over 100%.”
Su also suggested AMD could beat its previously stated long-term targets of 35% annual revenue growth and $20 in earnings per share. She said server revenue growth in the second half of 2026 would exceed 80% from a year earlier.
Helios AI servers are central to the pitch
The report said AMD’s growth case is being supported by the second-generation Helios AI server, which started shipping this quarter. The system packages compute, networking, and cooling into a rack-scale unit for direct sale to data center operators.
AMD expects to deliver the first Helios racks to Meta, OpenAI, and Oracle starting this quarter. The product is being positioned against NVIDIA’s NVL72 rack systems tied to the Blackwell and Rubin generations.
AMD said Helios can generate 30% more tokens per dollar spent than NVIDIA servers. If that claim holds, the report argued, AMD is challenging NVIDIA directly on one of its strongest selling points: price-performance. AMD also estimated that the AI market will reach $1.4 trillion by 2030.
Why the stock still dropped
The gap between AMD’s guidance and the more aggressive expectations in parts of the market appears to be one reason for the sell-off. While the company’s outlook was above the consensus figures cited by Bloomberg and LSEG, it did not satisfy investors who had been looking for a much bigger number.
The report said AMD’s fundamentals still look strong, and described the nearly 9% after-hours drop as a possible overreaction or profit-taking. What the move made clear is that expectations around AI-linked chip names remain high, and even strong results can trigger a sharp pullback when guidance falls short of the most optimistic bets.