Advanced Micro Devices (NASDAQ:AMD) Releases Earnings Results

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

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 Performance

Shares of AMD stock traded up $33.94 during mid-day trading on Tuesday, hitting $518.58. 46,770,442 shares of the stock were exchanged, compared to its average volume of 27,587,436. The stock’s fifty day simple moving average is $516.06 and its two-hundred day simple moving average is $354.63. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. Advanced Micro Devices has a 12-month low of $149.22 and a 12-month high of $584.73. The stock 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 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

Insiders Place Their Bets

In related news, EVP Mark D. Papermaster sold 6,000 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $536.33, for a total value of $3,217,980.00. Following the completion of the sale, the executive vice president directly owned 1,233,687 shares of the company’s stock, valued at $661,663,348.71. This represents a 0.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the transaction, the chief executive officer owned 2,896,899 shares in the company, valued at $1,334,572,400.31. This represents a 4.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 310,310 shares of company stock worth $141,185,456. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds have recently modified their holdings of the business. Sivia Capital Partners LLC increased its holdings in 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 purchasing an additional 2,970 shares during the last quarter. Brighton Jones LLC boosted its stake in shares of Advanced Micro Devices by 178.2% during the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after buying an additional 29,438 shares during the last quarter. United Bank grew its position in shares of Advanced Micro Devices by 22.0% during the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock worth $1,881,000 after buying an additional 2,392 shares in the last quarter. Schnieders Capital Management LLC. grew its position in shares of Advanced Micro Devices by 361.0% during the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after buying an additional 7,228 shares in the last quarter. Finally, Revolve Wealth Partners LLC increased its stake in shares of Advanced Micro Devices by 2.9% in the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock worth $1,001,000 after buying an additional 234 shares during the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently commented on AMD shares. Wells Fargo & Company increased their target price on Advanced Micro Devices from $505.00 to $615.00 and gave the company an “overweight” rating in a report on Tuesday, June 30th. Rosenblatt Securities reaffirmed a “buy” rating and set a $665.00 price target on shares of Advanced Micro Devices in a report on Friday, July 24th. Barclays cut Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a research report on Friday, June 12th. Evercore reiterated an “outperform” rating and issued a $579.00 price objective on shares of Advanced Micro Devices in a report on Tuesday, May 19th. Finally, Zacks Research lowered Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average target price of $529.46.

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.