AMD has risen in just a few years to become the world’s second-largest player in artificial intelligence chips, confirming its relevance against Nvidia. In the second quarter of 2026, the company posted record revenue of $11.5 billion, up 50% year-over-year, with non-GAAP earnings per share of $1.66, beating consensus estimates. The Data Center segment, driven by Instinct GPUs and EPYC server processors, saw its revenue double to $6.7 billion, representing 58% of total sales. For the third quarter, AMD expects approximately $13 billion in revenue. Despite these exceptional results, the stock fell approximately 9% after the release, illustrating a stretched valuation at around 41 times expected 2027 earnings, leaving little room for error in an AI accelerator addressable market estimated at $1.4 trillion by 2028.
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