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AMD rallies on forecast growth for server CPUs and data center revenue
The company projected second-half 2026 server CPU revenue to rise 80% year over year, and said data center revenues should more than double in 2027.
AMD shares were pressured after the chipmaker reported a strong second quarter and outlook, with Yahoo Finance citing results and guidance that point to rapid expansion in its data center business.
AMD forecast second-half 2026 server CPU revenue growth of 80% year over year, and projected 70% growth in 2027. It also expects data center revenues to more than double in 2027, with AI GPU growth well over 100%.
For the quarter, AMD beat Wall Street expectations across the board, posting record non-GAAP earnings per share of $1.66 versus $1.61 consensus, and revenue up 50% year over year to a record $11.5 billion, topping analyst projections of about $11.34 billion.
The company tied the performance to its Data Center segment, where revenue more than doubled year over year to $6.7 billion, alongside sequential gains including a 16% rise in Data Center sales and a three percentage point sequential increase in Data Center operating margins. AMD CEO Lisa Su said the results reflect strength in the product portfolio and execution, while analysts cited by Yahoo Finance pointed to continued momentum and estimate adjustments.