Advanced Micro Devices prepares for earnings with strong server chip momentum

AMD is gearing up to report its fiscal second-quarter 2026 earnings on August 4, and the numbers heading into the print look like the kind of report card you actually want to show your parents. The chipmaker’s data center segment posted $5.8 billion in revenue during Q1, a 57% jump year-over-year, and guidance for Q2 suggests the momentum isn’t slowing down. The company projects approximately $11.2 billion in total revenue for the quarter, representing around 46% year-over-year growth. Server CPU revenue alone is expected to surge more than 70% compared to the same period last year. The AI infrastructure engine EPYC server processors and Instinct GPU accelerators are driving the bulk of the data center growth, with both seeing accelerating demand as hyperscalers and enterprise customers race to deploy AI workloads at scale. Non-GAAP gross margins are expected to land around 56% for the quarter, reflecting the mix shift toward higher-margin data center products. The company has reportedly been working on two major projects heading into the earnings report. While specifics remain under wraps, the broader expectation is that these initiatives are tied to next-generation AI accelerator...