Advanced Micro Devices (NASDAQ:AMD) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Advanced Micro Devices (NASDAQ:AMD) posted its earnings results on Tuesday. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.04, FiscalAI reports. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.52%. The company had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. During the same quarter in the prior year, the company posted $0.48 earnings per share. Advanced Micro Devices’s revenue for the quarter was up 50.1% compared to the same quarter last year.

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

NASDAQ:AMD opened at $482.05 on Thursday. The stock has a market capitalization of $786.03 billion, a P/E ratio of 123.92 and a beta of 2.48. 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 fifty-two week low of $149.22 and a fifty-two week high of $584.73. The company has a 50 day moving average price of $515.79 and a 200 day moving average price of $356.42.

Key Advanced Micro Devices News

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD reported second-quarter revenue of $11.54 billion, up 50.1% year over year, and adjusted earnings of $1.66 per share, exceeding consensus estimates. Data Center revenue more than doubled to approximately $6.7 billion, while gross margin expanded to 56%. AMD Q2 Earnings Beat Estimates
• Positive Sentiment: Management forecast third-quarter revenue of $12.7 billion to $13.3 billion, above the roughly $12.4 billion consensus estimate, and said Data Center revenue could more than double in 2027 as Helios and other AI products ramp. AMD Forecasts Upbeat Revenue
• Positive Sentiment: Rosenblatt raised its AMD price target to $700 and maintained a Buy rating. Other firms, including Cantor Fitzgerald and Wedbush, also maintained bullish ratings, indicating that analysts see substantial longer-term upside. AMD Analyst Price Target
• Positive Sentiment: Analysts and industry commentary continue to identify AMD as a high-beta alternative to Nvidia, supported by accelerating AI infrastructure spending, server CPU demand and growing interest in its open-source ROCm software ecosystem. AMD and Marvell Gain Attention

Insider Activity

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 6,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $536.33, for a total value of $3,217,980.00. Following the sale, the executive vice president directly owned 1,233,687 shares of the company’s stock, valued at approximately $661,663,348.71. This represents a 0.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 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 on Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total transaction of $57,586,250.00. Following the completion of the sale, the chief executive officer owned 2,896,899 shares in the company, valued at $1,334,572,400.31. The trade was a 4.14% decrease in their ownership of the stock. 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. Insiders sold a total of 310,310 shares of company stock worth $141,185,456 over the last three months. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Large investors have recently bought and sold shares of the business. Wilkerson Advisory Group LLC acquired a new position in Advanced Micro Devices in the fourth quarter valued at $33,000. Wealth Watch Advisors INC purchased a new stake in shares of Advanced Micro Devices in the 3rd quarter worth about $41,000. Resources Management Corp CT ADV acquired a new stake in Advanced Micro Devices during the 4th quarter valued at $43,000. FSA Wealth Management LLC increased its position in Advanced Micro Devices by 32.3% during the third quarter. FSA Wealth Management LLC now owns 287 shares of the semiconductor manufacturer’s stock worth $46,000 after buying an additional 70 shares in the last quarter. Finally, IFC & Insurance Marketing Inc. acquired a new position in shares of Advanced Micro Devices in the fourth quarter worth $50,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Analysts Set New Price Targets

AMD has been the subject of several research reports. Loop Capital upgraded shares of Advanced Micro Devices to a “strong-buy” rating in a research note on Tuesday, June 16th. Wells Fargo & Company increased their price target on Advanced Micro Devices from $615.00 to $700.00 and gave the stock an “overweight” rating in a research report on Wednesday. Zacks Research raised Advanced Micro Devices from a “hold” rating to a “strong-buy” rating in a report on Monday. Wall Street Zen raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, July 20th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Advanced Micro Devices in a research report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Advanced Micro Devices has a consensus rating of “Moderate Buy” and a consensus price target of $540.30.

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.