AVC Q2 2026 revenue jumps 66% on AI server demand

AVC reported a 66% year-on-year revenue increase in its fiscal second quarter of 2026, driven by a surge in AI server shipments to hyperscale data centers. The company’s quarterly sales reached $4.2 billion, up from $2.53 billion in the same period a year earlier, according to slides published on Wednesday.

The AI server boom has accelerated demand for high-performance computing components, with AVC citing strong orders from cloud providers and enterprise data centers. The company did not provide unit shipment figures but noted that server-related revenue accounted for the majority of its growth. Gross margins expanded to 28%, reflecting pricing power amid constrained supply.

AVC, a supplier of advanced server components, highlighted that its AI-focused product lines contributed significantly to the revenue surge. The company added that it expects continued strength in AI infrastructure spending through the second half of the year, though it did not revise full-year guidance in the slides.

Analysts tracking the semiconductor supply chain noted that AVC’s results align with broader industry trends, where AI server demand has outpaced supply, pushing up component prices and vendor profitability. The company’s shares were indicated higher in after-hours trading following the release of the slides.