AMD provided third-quarter revenue guidance of approximately $8.7 billion, representing a 13% sequential increase and 28% year-over-year gain. The company forecast gross margins near 54%, excluding any contribution from pending MI308 AI accelerator shipments to China. Management cited strong ramp of MI350 GPUs and record EPYC server CPU bookings as key drivers of continued growth in the back half of the year. In response to the earnings release, Wall Street firms revised their 12-month price targets for AMD stock from as low as $111 to highs near $210. The consensus target of $161 implied modest downside from pre-release levels. Bullish analysts pointed to robust data center momentum and accelerating AI inference demand, while cautious voices highlighted elevated valuation multiples and ongoing uncertainty around China export approvals. Advanced Micro Devices rallied 5.7% after its second-quarter report showed revenue of $7.7 billion, up 32% year-over-year, despite an $800 million inventory charge tied to U.S. export restrictions. Trading volume surged to 94.4 million shares, nearly 80% above the three-month average, as investors cheered better-than-expected top-line growth even as data center sales were hampered by delayed China licenses. Despite near-term headwinds from export controls and restructuring charges, many investors retain buy convictions based on AMD’s positioning in the AI accelerator market. The MI350 series launch and partnerships with major cloud providers are expected to drive share gains, while the company’s growing full-stack ROCm software ecosystem and commitment to 7-nanometer and sub-7-nanometer architectures support a durable competitive edge in data center compute.
AMD provided third-quarter revenue guidance of approximately $8.7 billion, representing a 13% sequential increase and 28% year-over-year gain. The company forecast gross margins near 54%, excluding any contribution from pending MI308 AI accelerator shipments to China. Management cited strong ramp of MI350 GPUs and record EPYC server CPU bookings as key drivers of continued growth in the back half of the year. In response to the earnings release, Wall Street firms revised their 12-month price targets for AMD stock from as low as $111 to highs near $210. The consensus target of $161 implied modest downside from pre-release levels. Bullish analysts pointed to robust data center momentum and accelerating AI inference demand, while cautious voices highlighted elevated valuation multiples and ongoing uncertainty around China export approvals. Advanced Micro Devices rallied 5.7% after its second-quarter report showed revenue of $7.7 billion, up 32% year-over-year, despite an $800 million inventory charge tied to U.S. export restrictions. Trading volume surged to 94.4 million shares, nearly 80% above the three-month average, as investors cheered better-than-expected top-line growth even as data center sales were hampered by delayed China licenses. Despite near-term headwinds from export controls and restructuring charges, many investors retain buy convictions based on AMD’s positioning in the AI accelerator market. The MI350 series launch and partnerships with major cloud providers are expected to drive share gains, while the company’s growing full-stack ROCm software ecosystem and commitment to 7-nanometer and sub-7-nanometer architectures support a durable competitive edge in data center compute.