AMD data center business update

PARAGRAPH 1 --- AMD's data center business surged in Q2 2026, with revenue doubling to $6.7 billion, driven by strong sales of EPYC processors. This growth, up 107% YoY, contributed to AMD's record revenue of $11.5 billion, a 50% increase from the previous year. Wedbush analysts expect AMD's data center business to grow ahead of expectations, with AMD's stock up 100.6% YTD. AMD's AI-related solutions remain in high demand, with the company securing up to 2.5 gigawatts of data center capacity through a partnership with Core Scientific.

PARAGRAPH 2 --- The semiconductor industry, particularly the data center segment, is significantly impacted. AMD's competitors, such as Intel and NVIDIA, face increased pressure. AMD's dominance is reflected in its 27% operating margin compared to Intel's negative EPS. The AI infrastructure boom is driving demand for AMD's CPUs and GPUs, benefiting AMD's stock, which trades at a steep 66x forward P/E but shows strong growth potential.

PARAGRAPH 3 --- Investors should watch AMD's Q2 2026 earnings report on Aug. 4 for further guidance on data center growth. Additionally, the deployment of AMD's MI450 Series GPUs in Anthropic's and Microsoft's data centers will be crucial to monitor, as these partnerships could drive further growth and validate AMD's position in the AI market.