AMD’s data center sales surged 107% to $6.72 billion, now 58% of total revenue, as shares rally 128% year-to-date.
Advanced Micro Devices reported a 107% year-over-year jump in data center revenue to $6.72 billion, now accounting for 58% of total sales. The surge, driven by demand for EPYC processors and Instinct GPUs, lifted shares 128% year-to-date, though the market cap remains at $741.3 billion.
AMD guided third-quarter revenue to roughly $13 billion, implying 41% annual growth, but shares slipped post-earnings. Gross margins held flat at 56%, disappointing traders, while gaming revenue fell 31% year-over-year. CEO Lisa Su highlighted the Anthropic MI450 GPU deal and Microsoft Azure Helios collaboration as key growth drivers.
Analysts project AMD could reach a $1 trillion valuation by 2031, with shares potentially hitting $1,027, contingent on EPS scaling beyond the current $8.64 forward estimate. The stock trades near $490 after a 5.2% monthly decline, despite strong fundamentals.