Advanced Micro Devices shares fell even after the company reported a 107% jump in data center revenue to $6.7 billion in the second quarter and projected that segment revenue will more than double by 2027. Total revenue climbed 50% year over year to $11.54 billion, while adjusted earnings per share surged 246% to $1.66, beating consensus estimates. AMD will begin delivering its first full-rack AI system, Helios, this quarter, combining GPUs, CPUs, and networking components, with shipments expected to ramp in the fourth quarter. The company guided for third-quarter revenue of $13 billion, representing 41% growth, and an adjusted gross margin of 56%. The stock trades at a forward price-to-earnings ratio of 35 times 2027 analyst estimates and a forward price/earnings-to-growth ratio of 0.3.
