AMD more than doubles its data center revenue, but its stock falls on concerns over rising capex
After seeing its stock rise more than 7% during the regular trading session earlier today, Advanced Micro Devices Inc. saw all of those gains wiped out in extended trading after narrowly beating expectations in its latest financial results.
The chipmaker reported second-quarter adjusted earnings of $1.66 per share, edging past Wall Street’s forecast of $1.62 per share, while revenue jumped 50% to $11.54 billion, ahead of the $11.28 billion target. Profitability was up too, with AMD’s net income coming to $2.3 billion at the end of the quarter, up from just $872 million in the year-ago period. The impressive revenue growth can be taken as a sign of the company’s growing importance as a secondary supplier for artificial intelligence chips. AMD is the world’s biggest supplier of graphics processing units after Nvidia Corp., and it also sells central processing units under its EPYC brand which are now enjoying a renaissance of sorts amid the rise of AI agents.
AMD’s data center unit was responsible for much of its growth during the quarter, with sales rising 107% from the same period one year earlier to $6.7 billion. The company attributed this growth to sales of both its GPUs and the EPYC CPUs.
