- AMD became the fourth U.S. chipmaker to surpass a $1 trillion valuation, following Nvidia, Broadcom and Micron, with shares jumping 9.6% to a record $613.31.
- The move followed a 10% price hike on AI accelerators, consumer GPUs, and chipsets, which investors read as proof that demand is outrunning supply.
- AMD's Data Center segment reached $6.718 billion in Q2 FY2026, up 107% year over year and 58% of total revenue, with segment operating income of $2.10 billion versus a $155 million loss a year earlier.
- Strategic commitments include Anthropic for up to 2 gigawatts of MI450 Series GPUs, OpenAI deploying 6 gigawatts, Meta for up to 6 gigawatts of Instinct GPUs, and expanded Microsoft Azure collaboration on Helios.
- Management guided Q3 2026 revenue to roughly $13 billion, implying about 41% year-over-year growth, and said data center revenue will more than double year-over-year in 2027.
- AMD shares have surged 185% in 2026, far exceeding the Nasdaq's 15.8% gain, though the stock trades at about 41 times forward earnings versus Nvidia's 16.3 times.
Quotes
“Money is moving back into the AI trade”
“AMD is representative of that.”
“expect both unit and ASP growth”
“now expect data center segment revenue to more than double year-over-year in 2027”