Advanced Micro Devices reported record second-quarter 2026 revenue of $11.5 billion, a 50% year-over-year increase, driven by its data center business which more than doubled to $6.7 billion. Adjusted earnings per share soared 246% to $1.66. The company is gaining ground on Nvidia with its new MI450 series GPUs and Helios rack system, which it claims can be up to 15% more powerful and 30% more cost-efficient than competitors, and has secured customers including Oracle, Microsoft, OpenAI, Meta Platforms, and Anthropic. CEO Lisa Su expects data center revenue to more than double again in 2027, and the stock trades at a trailing P/E of 83.6 but a forward P/E of 34.6 based on Wall Street's 2027 earnings estimate of $13.92 per share. The article suggests the stock may be expensive for short-term investors but attractive for those with a multi-year horizon, contingent on continued AI infrastructure spending.
