Advanced Micro Devices

In this article Advanced Micro Devices reported second-quarter earnings on Tuesday that beat expectations, but the stock slumped in extended trading. 69 billion a year ago, a sign of the company's central position in the market for artificial intelligence chips. AMD's Data Center unit is what is driving the company's growth. 7 billion, up 107% on an annual basis, which the company attributed to central processing unit and graphics processing unit sales. AMD's stock has nearly tripled over the past year, both on optimism that its AI chips, branded Instinct, will take a meaningful amount of a growing market from Nvidia , as well as the resurgence of the CPU — which AMD sells under the brand name Epyc — which AI experts now say is an essential component for running agents.

52 billion. Some analysts had been looking for guidance as high as $14 billion. In July, AMD raised its expectations for the size of the semiconductor industry, saying it could be worth $2 trillion per year by 2028. 4 trillion of that coming from AI accelerators, or GPUs, up from a previous estimate of $500 billion by 2028. The company will also start shipping Helios, its first rack AI system, this year to companies like Meta , OpenAI , and Oracle . It's AMD's first rack-scale system, which more directly competes with Nvidia systems, not just its chips.

"We expect Data Center sales to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion," AMD CFO Jean Hu said in a statement. 8 billion.