AMD Stock Surges on Record Data Center Revenue [Video]

Advanced Micro Devices (AMD) reported second-quarter sales that beat analysts’ expectations, driven by record revenue from its data center segment.

The chipmaker posted revenue of $5.8 billion, up 9% from the year-ago period and above the analysts’ estimates. Net income at $265 million or 16 cents per share missed projections, though excluding one-time items, adjusted earnings of 69 cents per share beat estimates.

AMD’s top-line gains came as data center revenue more than doubled year-over-year to a quarterly record of $2.8 billion, as demand for the company’s artificial intelligence (AI) chips surged.

“The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business,” AMD CEO Lisa Su said. 

AMD said it anticipates $6.7 billion in sales in the third quarter, slightly higher than analysts expected, according to estimates compiled by Visible Alpha.

Su said the company expects to …