AMD’s Q2 Earnings Call Just Redrew the Data Center Story With Anthropic and Microsoft

Key Takeaways for AMD Stock as of August 2026

• Broad-Based Beat: AMD posted second-quarter revenue of $11.536 billion, up 50.11% YoY and 2.04% above Street estimates of $11.305B, while GAAP EPS of $1.38 beat estimates by 31.39% and adjusted EPS of $1.66 rose 245.83% YoY.
• Guidance Raise: Management guided Q3 revenue to ~$13B, up 41% YoY and ~13% sequentially, and now expects the data center segment to more than double YoY in 2027.
• Data Center Inflection: Data center revenue more than doubled to $6.7B, up 107% YoY, and now makes up 58% of total revenue versus 42% a year ago, driven by EPYC server CPUs and Instinct AI accelerators.
• Guidance Undersells It, Says Su: CEO Lisa Su told analysts the “well over 100%” 2027 data center growth framework is deliberately conservative, and the “over 100% should consider be well over 100%,” a signal that current targets may already be stale.

AMD just posted a 107% data center surge and a CEO hinting her own 2027 targets undersell the business. See the full breakdown of AMD stock on TIKR for free →

AMD’s Record Data Center Quarter Leaves Lisa Su Hinting 2027 Guidance Is Too Conservative

AMD (AMD) closed its second quarter of fiscal 2026 with revenue of $11.536 billion, up 50.11% year over year and 2.04% ahead of the $11.305 billion Street had modeled, marking the sixth straight quarter of greater than 30% growth. GAAP earnings per share came in at $1.38, a 31.39% beat against the $1.05 estimate and more than double the $0.54 AMD posted a year earlier. Adjusted EPS reached $1.66, up 245.83% year over year.

That earnings power traces almost entirely to data center. Segment revenue more than doubled to a record $6.7 billion, up 107% year over year, and now accounts for 58% of total revenue, up from 42% a year ago. Server CPU sales notched a fifth consecutive record quarter, with cloud and enterprise sales each growing more than 70% year over year. Gross margin expanded to 56%, up 200 basis points year over year, even as EBITDA margin slipped 155 basis points against Street estimates.

CFO Jean Hu had flagged this exact risk ahead of the print, warning that AMD’s early Instinct GPU systems run below the corporate average and that the Helios ramp would pressure margins near-term. The Q2 miss confirms that mix shift is already biting, even with server CPU strength doing most of the offsetting work.

Management is not treating that data center run as a ceiling. AMD now expects the segment to more than double year over year in 2027, with server revenue growing more than 70% off a much higher base. Pressed on whether that framework undersold the real trajectory, CEO Lisa Su addressed it directly on the Q2 earnings call: “I think what you’re hearing from us is that your data center AI number is probably too low. And maybe back to Stacy’s question without going into exact numbers, I think this notion of over 100% should consider be well over 100%.” That comment followed news of a new Anthropic partnership covering up to 2 gigawatts of MI450-series GPU deployment through Helios, AMD’s rack-scale AI platform, alongside an expanded Microsoft commitment to run Helios at scale across Azure.

Outside data center, the picture is more mixed. Client revenue climbed 23% year over year to $3.1 billion on record mobile sales, while gaming revenue fell 31% to $779 million as the console cycle matured. Embedded revenue rose 19% to $977 million, its strongest growth in three years. None of those segments moved the thesis the way data center did.

A CEO calling her own “well over 100%” guidance conservative is not a routine earnings call moment. Read the full Q2 transcript breakdown on TIKR for free →

TIKR Values AMD Stock at $1,930, Pricing In a Multiyear Data Center Ramp

TIKR’s mid-case model values AMD stock at $1,930 by December 2030, implying a 272% total return from the current price of $516, or 35% annualized over 4.4 years.

That annualized return sits well above what investors typically expect from a company already generating double-digit-billions in quarterly revenue, and it prices AMD closer to a multiyear compounding story than a mature semiconductor name.

The target rests on the same dynamic AMD just confirmed on its call: data center revenue that more than doubled in the second quarter, a 2027 outlook management itself now frames as understated, and new gigawatt-scale commitments from Anthropic and Microsoft that extend the Helios ramp well past its initial launch quarter.

TIKR’s model points to $1,930 and 35% annualized returns for AMD stock. Build your own valuation case on TIKR for free →

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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!