Advanced Micro Devices AMD is set to release its second-quarter 2026 results on Aug. 4.
AMD expects second-quarter 2026 revenues of $11.2 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of 46% and 9% sequential growth.
The Zacks Consensus Estimate for AMD’s second-quarter revenues is pegged at $11.32 billion, suggesting year-over-year growth of 47.3%. The consensus mark for second-quarter 2026 earnings is pegged at $1.61 per share, up by a penny over the past 30 days. The earnings estimate indicates growth of 235.42% on a year-over-year basis.
Consensus Estimate Trend
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AMD beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 6.5%.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
Let’s see how things have shaped up for the upcoming earnings announcement.
Factors to Note Ahead of AMD’s Q2 Results
AMD’s second-quarter 2026 results are expected to have been driven by continued strength in its Data Center business. Accelerating demand for EPYC server processors and Instinct AI accelerators is expected to have driven top-line growth. Strong inference workloads, increasing enterprise AI deployments and higher cloud spending likely boosted shipments of Instinct GPUs, while expanding adoption of fifth-generation EPYC processors across hyperscale and enterprise customers is expected to have supported server CPU revenues. AMD has highlighted improving customer engagement for the upcoming MI450 accelerator family and Helios AI rack platform, indicating robust AI infrastructure demand.
AMD is likely to have benefited from broader deployment across leading cloud providers during the quarter. Expanded EPYC-powered instances at AWS, Microsoft Azure, Google Cloud and Tencent, along with collaborations involving Meta, Samsung, Tata Consultancy Services, NAVER Cloud and Upstage, are expected to have strengthened AI infrastructure revenues. Meta’s planned deployment of AMD Instinct GPUs and adoption of next-generation EPYC processors, together with growing sovereign AI projects and strong MLPerf benchmark performance, likely reinforced customer confidence and accelerated design wins during the to-be-reported quarter.
AMD’s Client segment is expected to have benefited from sustained demand for Ryzen processors and expanding AI PC adoption. Commercial refresh cycles, enterprise deployments of Ryzen AI PRO processors and increasing Copilot+ PC launches are likely to have supported notebook and desktop processor shipments. Continued market share gains in premium consumer PCs, together with demand for high-end Ryzen X3D processors targeting gaming and creator workloads, are expected to have contributed to the revenue growth in the to-be-reported quarter. Meanwhile, Embedded revenues are likely to have remained stable as industrial and edge AI demand continued improving across multiple end markets.
However, AMD continues to face stiff competition from NVIDIA NVDA, Broadcom AVGO and a resurgent Intel INTC. AMD continues to face intense competition in AI accelerators and server processors from NVIDIA in AI GPUs and Intel in CPUs. Intel is aggressively working to regain server market share through its expanding Xeon roadmap, Intel Foundry and advanced packaging technologies. Broadcom is increasing competitive pressure on AMD by strengthening its position in custom AI accelerators and high-performance networking for hyperscale customers. The intensifying competition is expected to have hurt AMD’s top-line growth and margin expansion prospects in the second quarter of 2026.
AMD Stock Outperforms Sector, Valuation Stretched
Advanced Micro Devices shares have surged 128.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 6.9%. The company’s shares have underperformed Intel but outperformed NVIDIA and Broadcom, YTD. Shares of Intel, Broadcom and NVIDIA have appreciated 150.5%, 12.1% and 4.8%, respectively.
AMD’s Share Price Performance
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The AMD stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales, AMD is currently trading at 12.35X, higher than the sector’s 6.01X, Broadcom’s 11.26X, NVIDIA’s 10.17X and Intel’s 7.01X.
AMD Stock’s Valuation
Image Source: Zacks Investment Research
AMD Rides on Strong Portfolio Amid Stiff Competition
AMD's long-term growth outlook remains supported by its expanding Instinct GPU roadmap, including the MI450 series and Helios rack-scale AI systems. The company is increasingly offering full-stack AI infrastructure that combines CPUs, GPUs, networking and software, enabling it to compete for large AI clusters at hyperscalers and enterprise customers. Increasing cloud adoption, enterprise digital transformation, telecommunications infrastructure and edge computing are expected to provide sustained demand for AMD’s server CPU. The introduction of sixth-generation EPYC processors and expanding partnerships with major cloud providers should further strengthen AMD’s competitive position over the long term.
Beyond data centers, AMD is expanding AI capabilities across PCs, embedded computing, industrial automation, networking and telecommunications. The company’s growing portfolio of Ryzen AI processors, adaptive computing products and embedded AI solutions broadens its addressable market while reducing dependence on any single end market. Continued investments in AI software and ecosystem partnerships further enhance AMD’s long-term competitive position.
Nevertheless, AMD faces stiff competition, which keeps investors on edge. NVIDIA remains AMD’s biggest competitor in AI accelerators through its unmatched full-stack AI platform. The company continues to expand beyond GPUs by integrating Blackwell GPUs, Grace and upcoming Vera CPUs, NVLink networking, Spectrum-X Ethernet, InfiniBand and the CUDA software ecosystem into complete AI factory solutions. Broadcom focuses on custom XPUs, advanced networking silicon and long-term hyperscaler partnerships that enable customers to build AI infrastructure optimized for their own workloads. Intel is investing heavily in Intel 18A and 14A process technologies, EMIB-T advanced packaging and purpose-built AI silicon while leveraging its manufacturing scale to increase capacity.
Conclusion
AMD enters its second-quarter 2026 earnings with strong momentum, supported by robust demand for EPYC server processors, Instinct AI accelerators and Ryzen AI PCs. Its expanding AI infrastructure portfolio, growing cloud partnerships and diversified presence across data centers, PCs, embedded computing and edge AI position the company well to capitalize on the long-term AI investment cycle. While fierce competition from NVIDIA, Broadcom and Intel is likely to remain a key challenge, AMD’s consistent execution, expanding product roadmap and strong customer adoption provide confidence in its long-term growth prospects.
AMD currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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