AMD 2Q26 First Take: results broadly in line with the Street. Revenue growth re-accelerated, led by a doubling in the Data Center biz.

Data Center remains the key focus. Dolphin Research estimates AI GPUs (Instinct) delivered approx. $2.7bn this quarter vs. $1.1bn a year ago, with China export controls impacting roughly $0.7–0.8bn in the prior-year base.

For next quarter, the company guides revenue to $12.7–13.3bn, +10–15% QoQ (vs. the Street at $12.6bn). It expects non-GAAP GPM around 56% (in line with consensus).

With other segments relatively stable, we estimate next quarter’s incremental growth will mainly come from Data Center at roughly $1.2–1.8bn (vs. about $1.0bn QoQ this quarter). With MI455X starting to ship, that step-up is not particularly strong.

Investors care more about MI455X progress and the runway from here. Starting with MI455X, the company is shifting from selling chips to delivering rack-scale clusters, which lifts expectations for the AI GPU biz, yet the sequential guide still looks relatively soft.

AMD has announced collaborations with OpenAI, Meta, Anthropic, and Microsoft. The market reads this as growing customer acceptance of MI455X and is willing to ascribe a higher multiple on the prospect of faster growth.

Beyond signing wins, investors also want tangible execution, such as a more upbeat outlook, to meet elevated expectations. For more, follow Dolphin Research’s follow-up takes and Trans. $AMD(AMD.US)