Advanced Micro Devices reported record quarterly revenue of $11.5 billion, up 50% year-over-year and ahead of the $11.3 billion consensus, driven by a 100% surge in data center sales to $6.7 billion. Net income reached $2.3 billion, surpassing the $1.7 billion forecast. The company’s data center revenue now accounts for 58% of total sales, up from 42% a year earlier.
The strong results were overshadowed by a single statement from SpaceX CEO Elon Musk, who announced on the company’s earnings call that SpaceX would exclusively use NVIDIA Corporation’s chips moving forward. Musk cited Nvidia’s Vera Rubin architecture as the best available option. AMD’s shares fell more than 8% the following trading session, while Nvidia’s stock rose 3.4% despite no new financial data being released.
AMD CEO Lisa Su addressed Musk’s comments the next day, telling CNBC she respected his perspective while reiterating the company’s guidance for server revenue to grow more than 80% in the second half of 2026. Su also highlighted multiyear supply agreements with OpenAI, Meta, and Anthropic, the latter covering up to 2 gigawatts of compute capacity on AMD’s latest AI chips.
Analysts noted that despite AMD’s fifth consecutive quarter of record processor sales and an upgraded long-term semiconductor market forecast to $2 trillion by 2028—with $1.4 trillion expected to come from AI accelerators—the stock’s steep valuation, trading at roughly 170 times earnings after tripling over the past year, left little margin for error. Operating income of $2 billion came in slightly below expectations, contributing to the selloff.
