by Kalpana Singhal
AMD has raised its growth outlook for 2026 after reporting a strong second quarter, driven by rising demand for its Instinct AI accelerators and EPYC server processors across cloud, hyperscale and enterprise environments. The company reported quarterly revenue of $11.5 billion, representing approximately 50% year-on-year growth and 13% sequential growth, as AI infrastructure continued to emerge as the company’s primary growth engine. AMD’s Data Centre business delivered record revenue of $6.7 billion, more than doubling from the same period last year and accounting for approximately 58% of total quarterly revenue. The performance was supported by strong demand for EPYC server processors and Instinct AI accelerators, with both cloud and enterprise server CPU sales growing by more than 70% year-on-year. Sales of AMD Instinct data centre GPUs also more than doubled during the quarter as enterprises and cloud providers expanded investment in high-performance AI computing.
AMD Chair and CEO Dr Lisa Su said the data centre market opportunity is expanding significantly faster than the company had anticipated earlier in the year. AMD now expects its overall revenue growth for 2026 to be substantially above its previous target of more than 35%, reflecting continued momentum across AI infrastructure, server processors and high-performance computing. The company’s EPYC server portfolio continues to gain traction across enterprise and cloud environments, with more than 1,600 EPYC-powered public cloud instance types now available globally. Fifth-generation EPYC processors are being adopted across platforms from major OEMs including Dell Technologies, HPE and Lenovo. AMD is also preparing to introduce its sixth-generation EPYC “Venice” processors, with deployments expected from leading cloud providers and server manufacturers later in 2026.
AMD is also strengthening its position in the AI accelerator market, where it expects demand to continue expanding rapidly as enterprises move from AI experimentation to production deployments. The company estimates that the data centre AI accelerator market could grow at more than 55% annually and reach approximately $1.4 trillion by 2030. AMD is also preparing to scale its Helios rack-scale AI infrastructure platform, with deployments expected to increase toward the end of 2026 and into 2027. Beyond the data centre segment, AMD’s client business generated $3.1 billion in revenue, up 23% year-on-year. Sales of Ryzen Pro processors grew by more than 50% as AI PCs continued to gain traction among enterprise customers. The company’s embedded business also showed signs of recovery, supported by demand across networking, communications, aerospace, defence and industrial environments.
AMD’s accelerating growth is also creating a larger opportunity for its channel ecosystem, particularly system integrators, infrastructure solution providers, cloud partners and enterprise resellers. As organisations invest more heavily in AI infrastructure, private AI, data centre modernisation and server refresh projects, channel partners are increasingly positioned to build complete solutions combining processors, accelerators, networking, storage, software and integration services.
The company has also been expanding its partner strategy, with plans to bring more qualified partners into its ecosystem and broaden access to MDF and co-marketing support. This could provide additional opportunities for partners to develop demand-generation programmes around AI infrastructure, enterprise computing, AI PCs and edge deployments. With data centre revenue continuing to accelerate and enterprise adoption of AI infrastructure expanding, AMD’s latest results underline how artificial intelligence is becoming a central pillar of the company’s growth strategy and a major opportunity for its global partner ecosystem.
