AMD is held in the US Growth Portfolio. The company reported June quarter results after the close on Tuesday 4 August.

Revenue rose 50 percent year on year to a record $11.54 billion, ahead of the $11.31 billion consensus. Non-GAAP diluted earnings per share of $1.66 beat the $1.62 estimate and rose from $0.48. GAAP diluted EPS of $1.38 rose 156 percent. Non-GAAP gross margin reached 56.0 percent, up 13 points, and the prior year comparison carried $800 million of inventory charges tied to the US export restriction on MI308 shipments to China. 

Data Center revenue more than doubled, rising 107 percent to $6.72 billion with segment operating income of $2.10 billion against a loss a year ago. The segment now accounts for 58 percent of revenue, up from 42 percent. Chief financial officer Jean Hu said Instinct sales more than doubled on the MI350 ramp, and EPYC server CPU sales rose more than 70 percent in a fifth consecutive record quarter. Client and Gaming rose 6 percent to $3.84 billion, with Client up 23 percent and Gaming down 31 percent. Embedded rose 19 percent to $977 million. 

Lisa Su lifted the outlook well beyond prior targets. She guided server revenue growth above 80 percent in the second half and above 70 percent for 2027, and said Data Center segment revenue will more than double next year, adding on the call that the figure would be “well over 100 percent”. Helios is in production, with initial shipments starting this quarter and ramping through the fourth quarter. Anthropic will deploy up to 2GW of MI450 series capacity, with the first gigawatt beginning in the first half of 2027. AMD now expects revenue growth substantially above its prior 35 percent target and to significantly exceed its $20 annual EPS target. 

Third quarter guidance of about $13.0 billion plus or minus $300 million implies 41 percent growth and clears the $12.51 billion consensus, with gross margin about 56 percent. Buy-side expectations reportedly ran closer to $14 billion. 

Shares closed up 7.0 percent at $518.58 after rallying into the print, then fell 9.2 percent after hours to $471.00. Capital expenditure of $808 million ran well above the roughly $299 million modelled, and free cash flow fell to $1.56 billion from $2.57 billion in the March quarter.