AMD’s Q2 data center revenue doubled, its AI chip business is accelerating its catch-up with NVIDIA, and its stock underperformed in after-hours trading.

AMD released its second-quarter 2026 financial results. The data shows that the company’s data center business generated $6.72 billion in revenue, up 107% year-over-year and approximately 15.6% quarter-over-quarter, serving as the main driver of its performance growth. AMD’s total revenue for the second quarter stood at $11.54 billion, up 50% year-over-year, hitting an all-time high and exceeding the market consensus of $11.28 billion. Its adjusted earnings per share (EPS) came in at $1.66, beating analysts’ forecast of $1.62. Looking ahead to the third quarter, AMD projects revenue of approximately $13 billion, with a range of plus or minus $300 million, which is above the market expectation of $12.52 billion. The company also forecasts an adjusted gross margin of around 56%. In terms of its AI business, AMD is accelerating its push to challenge NVIDIA’s leading position in the AI chip market. AMD CEO Lisa Su stated that the second-generation Helios AI servers, equipped with MI455X accelerators and TSMC’s "Venice" processors, have entered full production and are expected to start shipping in the coming months. According to reports, AMD will begin delivering these AI servers to Meta and OpenAI at the end of the current quarter. However, AMD’s stock price dropped more than 9% in after-hours trading following the release of the financial results. The market believes that despite the company’s strong performance and its stock having doubled year-to-date, investors had expected higher growth projections and stronger guidance for its AI business. Additionally, AMD’s gaming business revenue fell 31% year-over-year to $779 million in the second quarter, driven by lower sales of Xbox Series X/S, PS5, and Steam Deck, as well as component supply constraints.