Advanced Micro Devices Inc.

Big performance + mix shift to data center (what’s good/surprising) - Q2 revenue $11.5B, +50% YoY and +13% sequentially; 6th straight quarter >30% YoY growth. - Data center revenue $6.7B: +107% YoY, +16% sequentially; now 58% of total revenue (vs 42% a year ago). - Profitability strengthened: gross margin 56% (+200 bps YoY, +80 bps sequential); operating income $3.1B with 27% operating margin.

Data center AI momentum (opportunity) - Data center AI revenue more than doubled YoY, driven by Instinct accelerators; MI355x adoption broadening and MI350 availability expanding at cloud providers. - Helios (rack-scale AI platform) delivering strong early demand: management cited up to 15% more throughput and up to 30% more tokens per dollar vs competition. - Partnerships: Anthropic targeting up to 2 GW of MI450 series in Helios (first 1 GW in 1H 2027), plus Microsoft deploying Helios at scale on Azure for frontier model inferencing. - Helios production ramp: initial shipments tracked to begin later in Q3, ramping through Q4 and 2027; customer pull “ahead” of initial forecast (not just demand, but stronger-than-expected volume visibility).

Server CPU demand + upgrade to 2H/2027 growth outlook (forecast) - Server CPU momentum: “fifth consecutive quarter of record server CPU revenue”; cloud and enterprise each +70%+ YoY. - EPYC share gains cited as customers expand Turin (5th-gen) and Genoa (4th-gen). - Major forecast upgrade/expectations for server: - Server revenue expected >+80% YoY in 2H 2026 - and >+70% YoY for full-year 2027 (from a higher base). - AMD now expects data center segment revenue to more than double YoY in 2027.