Advanced Micro Devices (AMD) announced record revenue of $11.5 billion for the second quarter of 2026, a 50% increase from the same period last year. The company's data center segment was the primary driver of this growth, with revenue more than doubling to $6.7 billion, up 107% year-over-year. This segment now accounts for 58% of AMD's total revenue.
This significant expansion in the data center business is attributed to strong demand for AMD's EPYC processors and Instinct GPUs, which are critical components for artificial intelligence (AI) workloads. Dr. Lisa Su, AMD's Chair and CEO, stated that the company is experiencing a "significant expansion in demand for compute across all of our markets" due to AI. AMD anticipates that data center segment revenue will more than double again year-over-year in 2027.
In contrast to the booming data center business, AMD's gaming segment revenue fell by 31% year-over-year, reaching $779 million. This decline is attributed to lower semi-custom revenue. The company's client business, however, showed growth, with revenue increasing by 23% year-over-year to $3.1 billion, largely due to strong demand for AMD Ryzen processors. The embedded segment also saw an increase, growing 19% year-over-year to $977 million.
AMD's financial performance reflects a strategic shift towards high-performance computing and AI. The company launched the AMD Helios rack-scale solution, designed to provide AI server racks, and the AMD Instinct MI400 Series GPU family, including the MI455X and MI430X accelerators. These products are aimed at meeting the growing demand for AI training and inference.
Looking ahead, AMD expects revenue for the third quarter of 2026 to be approximately $13 billion, representing a 41% year-over-year increase. The company's non-GAAP gross margin is projected to remain around 56%.