Advanced Micro Devices (NASDAQ:AMD) Issues Earnings Results, Beats Estimates By $0.04 EPS

Advanced Micro Devices (NASDAQ:AMD) released its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04, FiscalAI reports. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The firm had revenue of $11.54 billion during the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter in the previous year, the company posted $0.48 earnings per share. The company’s quarterly revenue 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 Price Performance

Shares of NASDAQ AMD opened at $518.58 on Wednesday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The company has a 50 day simple moving average of $516.06 and a two-hundred day simple moving average of $354.63. Advanced Micro Devices has a fifty-two week low of $149.22 and a fifty-two week high of $584.73. The company has a market capitalization of $845.60 billion, a price-to-earnings ratio of 170.03 and a beta of 2.48.

Trending Headlines about Advanced Micro Devices

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

• Positive Sentiment: AMD reported record second-quarter revenue of $11.54 billion, up 50.1% year over year, while adjusted EPS of $1.66 exceeded consensus. Data-center revenue reportedly more than doubled to approximately $6.7 billion, underscoring strong demand for EPYC processors and Instinct AI accelerators. AMD’s revenue climbs 50% and data center sales doubled, but the stock is down
• Positive Sentiment: Management guided for third-quarter revenue of roughly $12.7 billion to $13.3 billion, above the approximately $12.4 billion analyst consensus. CEO Lisa Su also said unexpected server CPU demand is pressuring supply but expects conditions and growth to improve in 2027. AMD forecasts upbeat revenue on AI data-center demand
• Positive Sentiment: AMD said Meta, OpenAI and Anthropic are helping optimize AI models for its platform, potentially strengthening the ROCm software ecosystem and adoption of AMD accelerators. Dell also selected AMD Instinct MI355X GPUs for a new AI and high-performance-computing platform. AMD CEO says major AI companies are improving its ecosystem
• Neutral Sentiment: William Blair maintained a Hold rating, saying modest guidance upside and AI-driven growth potential are balanced by competitive pressure and uncertainty around the pace of the Helios rack-scale platform ramp. Analyst maintains Hold on AMD
• Negative Sentiment: Investors viewed the earnings and forecast as only modestly ahead of expectations, seeking clearer evidence that the multibillion-dollar AI spending boom will translate into faster growth and a larger Helios opportunity. AMD’s high valuation leaves limited room for disappointment. AMD falls as investors seek bigger AI payoff
• Negative Sentiment: SpaceX said it would exclusively use Nvidia AI chips, providing a high-profile competitive endorsement for Nvidia and weighing on AMD and other semiconductor stocks. AMD, Nvidia, Intel and other stocks that explain today’s market

Insiders Place Their Bets

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of the business’s stock in a transaction dated 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 approximately $45,504,306. The trade was a 9.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer directly owned 2,896,899 shares in the company, valued at $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 310,310 shares of company stock valued at $141,185,456. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Brighton Jones LLC increased its holdings in shares of Advanced Micro Devices by 178.2% in the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after purchasing an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in Advanced Micro Devices by 2.9% in the 4th 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 holdings in shares of Advanced Micro Devices by 125.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after acquiring an additional 2,970 shares in the last quarter. United Bank boosted its position in shares of Advanced Micro Devices by 22.0% during the 2nd quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock valued at $1,881,000 after acquiring an additional 2,392 shares during the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in shares of Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock valued at $1,310,000 after purchasing an additional 7,228 shares in the last quarter. Institutional investors own 71.34% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. HSBC downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating and boosted their target price for the stock from $335.00 to $340.00 in a research note on Monday, May 4th. Robert W. Baird set a $1,250.00 price objective on shares of Advanced Micro Devices in a report on Friday, July 24th. The Goldman Sachs Group raised their target price on Advanced Micro Devices from $450.00 to $640.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Cantor Fitzgerald restated an “overweight” rating and set a $700.00 price target on shares of Advanced Micro Devices in a research report on Friday, July 24th. Finally, Wall Street Zen upgraded shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research report on Monday, July 20th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $535.97.

About Advanced Micro Devices

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.