ADVANCED MICRO DEVICES Q2 FY26 earnings call AMD

AMD significantly raised its market opportunity estimates for data center AI accelerators to $1.4 trillion by 2030 (up from prior expectations) and server CPUs to $220 billion by 2030, both projected to grow over 45-50% annually. The overall high-performance and AI computing market is now projected to reach $2 trillion by 2030, growing approximately 40% annually, with AMD expecting to outgrow the market. This expanded opportunity, combined with product strength and growing customer visibility, is creating a steeper growth trajectory for AMD's data center business.

The sixth-gen EPYC Venice family, built on the all-new Zen 6 core and 2-nanometer technology, is now in production. Venice extends EPYC leadership in performance and efficiency, delivering over twice the performance per watt of leading x86 CPUs and up to 3.3x that of leading ARM-based CPUs. Over 230 fifth-gen EPYC platforms are in market, and customer demand for Venice is stronger than any prior EPYC generation, with OEMs launching platforms and cloud providers planning deployments beginning later this year.

AMD launched Helios, a rackscale AI platform combining EPYC Venice CPUs, MI450-Series GPUs, Pensando networking, and ROCm software. Helios delivers up to 15% more throughput and 30% more tokens per dollar than competitors for inferencing workloads. New strategic partnerships include Anthropic, which will deploy up to 2 gigawatts of MI450 series GPUs in Helios starting H1 2027, and Microsoft, which will deploy Helios at scale on Azure. Initial Helios shipments are on track to begin later this quarter and ramp through Q4 FY26 and into 2027.

The ROCm software stack has reached an important inflection point, providing the performance, capabilities, and developer experience needed for AI deployment at scale. Over 3 million models now run out-of-the-box on AMD, and open-source contributions to ROCm have increased more than tenfold over the past year. AMD also introduced ROCm.ai, an AI-assisted development platform, which delivers over twice the training performance and 3x inferencing performance of ROCm 7.

Despite an expected softer PC market in H2 FY26 due to higher memory and component costs, AMD anticipates its client business will outperform the market. This is driven by the strength of its Ryzen portfolio, including Ryzen Pro sales growing over 50% YoY and the introduction of Ryzen AI Pro 400 series processors. The new Gorgon Halo processor for the Ryzen AI Halo platform features an industry-leading 192 gigabytes of unified memory and can run models with up to 300 billion parameters, signaling AMD's focus on AI PCs.

Second quarter 2025 results included approximately $800 million of inventory and related charges associated with U.S. export control restrictions on MI308 shipments to China. Unless otherwise noted, comments making year-over-year comparisons exclude the impact of those charges to provide a more comparable and meaningful view of underlying business performance.