AMD's Q2 revenue grew 50% to $11.54 billion, with data center revenue soaring 107%, and analysts believe its AI growth potential is huge.
AMD announced its second-quarter earnings, with revenue increasing by 50% year-over-year to $11.54 billion, exceeding market expectations of $11.28 billion. Adjusted earnings per share (EPS) surged by 246% to $1.66, also higher than the anticipated $1.62. Specifically, data center business revenue saw a significant 107% year-over-year increase to $6.7 billion, with data center CPU revenue growing by 70%. The company expects server CPU growth to exceed 80% year-over-year in the second half of the year and over 70% in 2027, and anticipates AI data center revenue to double by 2027. AMD plans to begin delivering its first full-rack AI system, Helios, this quarter, with shipments expected to increase in the fourth quarter, having secured significant inference business agreements with companies such as OpenAI, Meta Platforms, Anthropic, and Microsoft. The company projects third-quarter revenue to grow by 41% year-over-year to $13 billion (±$300 million). Some analysts believe that given AMD's immense growth potential in the AI sector, the current stock price pullback presents a buying opportunity.
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