AMD rode a surge in AI infrastructure spending to its best quarter ever, with revenue climbing 50 percent year over year to $11.5B. Data center sales more than doubled to $6.7B and now account for 58 percent of the company’s total, powered by demand for EPYC server processors and Instinct accelerators.
Profitability improved sharply too. GAAP net income came in at $2.3B for the quarter, and on an adjusted basis AMD earned $1.66 a share. Adjusted operating profit reached $3.1B, up 245 percent, after gross margin climbed to 54 percent. The year-ago period was weighed down by $800M of charges tied to export controls that blocked sales of Instinct MI308 accelerators to China.
Client revenue rose 23 percent to $3.1B on Ryzen demand, while gaming fell 31 percent to $779M on weak semi-custom sales. Embedded grew 19 percent to $977M. CEO Lisa Su pointed to accelerating EPYC momentum, scaling Instinct deployments and the ramp of the Helios rack-scale platform, alongside AI infrastructure collaborations with Anthropic, Microsoft and Cerebras.
For the third quarter AMD guides to roughly $13B in revenue, up about 41 percent year over year, with data center growth expected to accelerate in the second half. The print lands as rivals Intel and NVIDIA also lean on AI data center demand, giving the market a fresh read on whether hyperscaler spending is still climbing.
