Advanced Micro Devices Inc. reported a record quarterly revenue of $11.5 billion, representing a 50 percent increase from the previous year.
The growth was driven primarily by the company's data center division, which generated $6.7 billion in revenue. That marked a 107 percent increase from a year earlier and accounted for approximately 58 percent of total company earnings. The surge stemmed from strong demand for EPYC server processors and Instinct artificial intelligence accelerators.
AMD posted non-GAAP adjusted earnings per share of $1.66, topping analyst expectations of $1.62, while net profit reached $2.8 billion. Under GAAP standards, net income stood at $2.3 billion, or $1.38 per share. Total revenue beat market forecasts of $11.3 billion, and data center revenue surpassed the expected $6.5 billion.
Results across other business segments were mixed. The client division, which includes personal computer processors, grew 23 percent to $3.1 billion. Gaming revenue declined 31 percent to $779 million because of lower demand for semi-custom chips, while embedded solutions sales rose 19 percent to $977 million.
Division Performance and Future Outlook
AMD Chief Executive Officer Lisa Su said the company enters the second half of the year with strong growth momentum due to accelerating EPYC sales and the initial large-scale rollout of the Helios server platform.
For the third quarter, AMD forecasts revenue between $12.7 billion and $13.3 billion. That range represents a year-over-year increase of roughly 41 percent and exceeds the analyst consensus estimate of $12.5 billion.
Market Reaction and Competitor Results
The financial report arrived shortly after competitor Intel reported quarterly revenue of $16.1 billion, a 25 percent increase. Intel's Data Center and AI division raised sales by 59 percent to $6.3 billion.
Despite reporting record quarterly results and exceeding market expectations, shares of AMD fell by more than 8 percent in over-the-counter trading following the announcement.
