Advanced Micro Devices (NASDAQ:AMD) Announces Earnings Results, Beats Expectations By $0.05 EPS

Advanced Micro Devices (NASDAQ:AMD) issued its earnings results on Tuesday. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.61 by $0.05, FiscalAI reports. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business had revenue of $11.54 billion during the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the prior year, the firm earned $0.48 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 50.1% on a year-over-year basis.

Here are the key takeaways from Advanced Micro Devices’ conference call:

• Record Q2 results: Revenue rose 50% year over year to $11.5 billion, while gross margin expanded to 56% and comparable diluted EPS increased approximately 82%. Data center revenue more than doubled to $6.7 billion and represented 58% of total revenue.
• AMD raised its growth expectations for its data center business, forecasting server CPU revenue growth of more than 80% year over year in the second half of 2026 and more than 70% in 2027. The company expects total data center revenue to more than double in 2027, supported by strong EPYC demand and new Venice processors.
• The AI opportunity is expanding rapidly, with AMD estimating a data center accelerator market of approximately $1.4 trillion by 2030. Helios rack-scale systems using MI450 GPUs are in production, initial shipments are expected this quarter, and announced deployments with OpenAI, Meta, Anthropic, and Microsoft provide significant potential for 2027 growth.
• Management said customer demand for Helios and the next-generation MI500 platform is ahead of initial expectations, while ROCm software adoption and ecosystem contributions continue to grow. AMD now expects overall revenue growth to substantially exceed its prior target of more than 35% and expects to significantly surpass its $20 strategic EPS target.
• AMD expects a softer PC market in the second half as higher memory and component costs pressure demand, while gaming revenue fell 31% year over year because of lower semi-custom console sales and weaker graphics demand. The server CPU supply chain also remains tight, although management expects conditions to improve in 2027.

Advanced Micro Devices Stock Up 7.0%

Advanced Micro Devices stock traded up $33.94 during trading hours on Tuesday, hitting $518.58. The stock had a trading volume of 46,770,442 shares, compared to its average volume of 27,587,436. The company has a quick ratio of 1.96, a current ratio of 2.72 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $845.60 billion, a P/E ratio of 170.03 and a beta of 2.48. Advanced Micro Devices has a 12-month low of $149.22 and a 12-month high of $584.73. The stock’s 50-day moving average price is $516.06 and its 200-day moving average price is $354.63.

Key Stories Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD reported second-quarter adjusted EPS of $1.66, ahead of the $1.61 consensus estimate, while revenue rose 50.1% year over year to $11.54 billion, exceeding the $11.31 billion forecast. AMD Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Data-center revenue reportedly more than doubled to a record $6.7 billion, reinforcing the AI-infrastructure growth story and AMD’s efforts to compete with Nvidia in GPUs, CPUs and rack-scale systems. AMD Revenue Climbs 50% and Data Center Sales Doubled
• Positive Sentiment: Third-quarter revenue guidance of $12.7 billion to $13.3 billion exceeded the approximately $12.4 billion analyst consensus, indicating continued demand for AI and data-center products. AMD Forecasts Upbeat Revenue on AI Data-Center Demand
• Neutral Sentiment: A broad risk-on rally lifted the semiconductor sector, with gains in Nvidia, Intel, Broadcom and Marvell providing a favorable backdrop for AMD before earnings. Chip Stocks Ride a Risk-On Rally
• Negative Sentiment: Investors viewed the quarterly beat as modest relative to AMD’s rally and valuation—roughly 170 times trailing earnings in the supplied data—raising concerns that expectations had already priced in exceptional execution. AMD Reported Record Sales but Stock Fell
• Negative Sentiment: Commentary also highlighted potentially “shocking” capital spending and continuing insider selling; data supplied by Quiver shows 99 insider sales and no purchases over the past six months. These signals may have amplified profit-taking after the release. AMD Stock Falls on Q2 Earnings

Insider Activity

In related news, EVP Paul Darren Grasby sold 24,376 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president directly owned 105,222 shares in the company, valued at $46,759,604.58. The trade was a 18.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total value of $4,502,772.00. Following the completion of the transaction, the director owned 87,173 shares of the company’s stock, valued at $45,504,306. This represents a 9.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 310,310 shares of company stock valued at $141,185,456. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently made changes to their positions in the business. Brighton Jones LLC boosted its position in shares of Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after acquiring an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after acquiring an additional 234 shares during the last quarter. Sivia Capital Partners LLC raised its position in Advanced Micro Devices by 125.1% during the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock valued at $758,000 after purchasing an additional 2,970 shares during the period. United Bank lifted its stake in shares of Advanced Micro Devices by 22.0% in the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after purchasing an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in shares of Advanced Micro Devices by 361.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after purchasing an additional 7,228 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on AMD. Wedbush upped their price target on shares of Advanced Micro Devices from $450.00 to $600.00 and gave the company an “outperform” rating in a report on Monday, July 27th. Robert W. Baird set a $1,250.00 price objective on shares of Advanced Micro Devices in a research report on Friday, July 24th. HSBC downgraded shares of Advanced Micro Devices from a “buy” rating to a “hold” rating and upped their price objective for the company from $335.00 to $340.00 in a research note on Monday, May 4th. Zacks Research cut Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. Finally, Oppenheimer cut shares of Advanced Micro Devices from a “market perform” rating to a “market perform” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $529.46.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.