TLDR AMD revenue jumps 50% to a record $11.5 billion in a powerful second quarter. Data Center sales more than double, rising 107% to a record $6.7 billion total. GAAP net income climbs 163%
Advanced Micro Devices (AMD) stock closed 7.00% higher at $518.58 after the chipmaker reported record second-quarter revenue and stronger profitability. However, the stock fell 8.49% after hours to $474.54 despite broad growth across core businesses. The sharp reversal followed results showing expanding data center demand alongside continued weakness in gaming revenue.
Advanced Micro Devices, Inc., AMD
AMD generated $11.5 billion in second-quarter revenue, marking a 50% increase from the same period last year. Revenue also rose 13% from the first quarter, supported by stronger demand across server and client products. The company reported gross profit of $6.2 billion, more than double the prior-year level.
GAAP operating income reached $2.0 billion, compared with a $134 million operating loss one year earlier. Net income increased 163% to $2.3 billion, while diluted earnings per share climbed 156% to $1.38. Meanwhile, the operating margin improved to 17%, up from negative 2% during the comparable quarter.
On a non-GAAP basis, AMD posted $3.1 billion in operating income and a 27% operating margin. Adjusted net income reached $2.8 billion, while diluted earnings per share increased to $1.66. The company also lifted its adjusted gross margin to 56%, compared with 43% one year earlier.
Data Center revenue reached $6.7 billion, rising 107% year over year and becoming AMD’s largest business segment. The division represented 58% of total revenue as demand increased for EPYC processors and Instinct accelerators. AMD expects faster Data Center sales during the second half as deployments expand across major cloud platforms.
Client and Gaming revenue totaled $3.8 billion, which marked a 6% increase from the previous year. Client revenue rose 23% to $3.1 billion as demand strengthened for Ryzen processors across commercial and consumer systems. However, Gaming revenue dropped 31% to $779 million because lower semi-custom sales offset graphics card demand.
Embedded revenue increased 19% to $977 million as demand improved across industrial and communications markets. That recovery added another source of growth beyond the company’s data center and personal computer businesses. Together, the segment results showed that AMD relied less heavily on gaming during the quarter.
AMD introduced new rack-scale systems, accelerators, server processors, and software tools during the quarter. The company also expanded partnerships with Anthropic, Microsoft, Cerebras, Cisco, Oracle, Meta, and other technology groups. Those agreements support broader deployment of AMD hardware across cloud computing, model inference, and enterprise workloads.
The company launched its MI400 accelerator family and sixth-generation EPYC server processors for large computing deployments. It also released ROCm.ai to simplify development and optimization across AMD platforms. The Helios rack-scale system entered deployment plans at several cloud providers and research organizations.
AMD also expanded its client, embedded, and robotics offerings through new Ryzen, Radeon, Kria, and Versal products. The company extended Socket AM5 support through 2029, giving desktop users a longer platform upgrade path. These launches broaden AMD’s product base while Data Center demand continues to drive revenue and earnings growth.
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