AMD Posts Record $11.54 Billion Quarter as Data Center Revenue Doubles — but the Stock Falls

AMD reported record second-quarter 2026 results on August 4, with revenue of $11.54 billion — up about 50% year over year — propelled by data center sales that more than doubled. The headline numbers beat analyst estimates, yet shares fell in the days after as investors focused on a forecast that failed to excite, CNBC and Reuters reported.

Data Center Doubles

Data center revenue hit $6.7 billion in the quarter, more than doubling from a year earlier and up 107%, according to Data Center Dynamics. AMD executives credited surging AI accelerator demand, and the earnings call highlighted partnerships with Anthropic and Microsoft that TIKR.com said redrew the data center story for the company.

The Sell-Off

Despite the beat, AMD stock fell 6.9% in the sessions after earnings, TradingView reported, as investors weighed a guidance outlook that Reuters described as AI-powered but one that failed to wow. The move also dragged the Philadelphia Semiconductor Index lower, with one report showing AMD plunging 7.8% and pulling the index down with it.

Wall Street's Split

Analyst reactions split sharply. Wells Fargo raised its price target to $700, and StockStory called the quarter a data center AI-driven growth report, but Seeking Alpha warned that the fantastic growth could still disappoint momentum-driven investors. The divergence shows how high expectations have become for AI chip names after a multi-quarter surge.

Why It Matters

AMD's results are the clearest evidence yet that the AI chip boom has moved beyond Nvidia. With data center revenue now a majority of AMD's top line and doubling, the company has cemented itself as the second credible supplier of AI accelerators — even if the market is demanding even more.