Advanced Micro Devices (AMD)
For most of its history the second-best x86 chip company. In 2026 it became a genuine AI competitor, with data centre revenue more than doubling in a single year.
The business
AMD designs processors and graphics chips. It does not own the factories — production is outsourced, principally to TSMC. Q2 2026 revenue was a record $11.5bn, up 50%.
The Data Center segment produced $6.7bn of that, up 107% year on year and 58% of company revenue, driven by EPYC server processors and Instinct AI accelerators. Client and Gaming was $3.8bn, with Client up 23% but Gaming down 31%. Embedded was $977m.
The numbers that matter
All figures as reported on the dates shown. Nothing on this page updates with the share price — the live valuation sits in the app.
| Measure | Latest reported | |
|---|---|---|
| Q2 2026 revenue | $11.5bn | record, +50% |
| Data Center revenue | $6.7bn | +107%, 58% of total |
| Gaming revenue | −31% | lower semi-custom sales |
| GAAP gross margin | 54% | 56% non-GAAP |
| Diluted EPS | $1.38 | $1.66 non-GAAP |
| Q3 2026 guidance | ~$13bn | about +41% year on year |
The moat
Thin, and the honest answer is that AMD's position rests on execution rather than protection. Chip designs are replaced every few years; whoever has the best part at the best price wins the next contract, and nothing prevents a customer switching.
What advantages exist are the x86 instruction set, effectively a duopoly with Intel, and the cost of migrating large software estates. In AI accelerators AMD is the challenger to NVIDIA rather than the incumbent, competing on price and availability.
What to check before you value it
Concentration in the data centre
58% of revenue now comes from one segment serving a small number of very large buyers. Concentration cuts both ways — it drove 50% growth, and it is the same reason a single customer's decision matters.
Gaming, which is shrinking
Gaming revenue fell 31% year on year on lower semi-custom sales. Not all of AMD is growing, and the mix matters to the margin.
Gross margin, GAAP and non-GAAP
Q2 2026 gross margin was 54% on a GAAP basis and 56% non-GAAP. Semiconductor margins move with product mix, and the gap between the two measures is where one-off items sit.
Whether guidance keeps being met
Management guided Q3 2026 revenue to about $13bn and said data centre sales should double in 2027. A valuation resting on guidance depends on the record of meeting it.
Recent filings
Dated announcements only. Figures below were reported on the dates shown and are not updated as the share price moves.
How Oak Growth scores it
Oak Growth runs a discounted cash flow on Advanced Micro Devices and publishes the assumptions behind it — the discount rate, the growth rate and the terminal value — alongside a margin of safety against the live price. It also scores the company on the four pillars: moat, management, economics and value, in that order, because price comes last. The live figures sit in the app rather than on this page, so nothing here goes stale.
See what Advanced Micro Devices is worth today
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Try Oak Growth — 7-day free trialCommon questions
Why has AMD grown so fast in 2026?
Data centre demand. Q2 2026 revenue rose 50% to a record $11.5bn, with the Data Center segment up 107% to $6.7bn on EPYC server processors and Instinct AI accelerators. That segment is now 58% of company revenue.
Is AMD a competitor to NVIDIA?
Increasingly, yes. AMD's Instinct accelerators compete in AI compute, and its Helios rack-scale system competes with complete NVIDIA systems rather than individual chips. AMD is the challenger in this market rather than the incumbent.
Does AMD manufacture its own chips?
No. AMD designs chips and outsources manufacturing, principally to TSMC. That keeps capital requirements lower than for an integrated manufacturer but makes the company dependent on a third party's capacity and pricing.
What is the biggest risk in AMD's business?
Concentration and the absence of a durable moat. Most growth now comes from one segment serving a small number of very large customers, and chip designs are replaced every few years, so today's advantage has to be re-won each cycle.
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