AMD growth outpaced Intel’s in the second quarter of 2026 as demand for server processors and AI accelerators lifted its data center business. AMD reported a 50% increase in total revenue and a 107% jump in data center sales, while Intel’s total revenue rose 25%. The results show expanding demand across computing products, rather than establishing that AI spending is shifting away from GPUs toward CPUs.
Key Takeaways
- AMD’s data center revenue reached $6.7 billion, accounting for 58% of quarterly sales.
- Intel also expanded, with total revenue of $16.1 billion and Data Center and AI revenue up 59%.
- AMD’s August outlook called for faster second-half data center sales; that remained a management expectation, not a reported result.
Table of Contents
- AMD growth reflects demand for both CPUs and GPUs
- Intel’s recovery provides a different comparison
- The next test is delivery against the August outlook
- Conclusion
AMD growth reflects demand for both CPUs and GPUs
In its second-quarter 2026 results announcement, released on August 4, AMD attributed the data center increase to strong demand for EPYC server processors and Instinct GPUs. Total quarterly revenue reached $11.536 billion, up from $7.685 billion a year earlier.
Chief Executive Lisa Su said EPYC demand was accelerating and Instinct deployments were scaling. The combination matters: AMD’s reported growth was supported by both its server CPU franchise and its AI accelerator business, not just one category of chip.
Data centers represented 58% of company revenue in the quarter. That concentration makes the business particularly important to AMD’s overall growth, even as its client, gaming and embedded operations follow different demand patterns.
| Item | Details |
|---|---|
| AMD Q2 2026 GAAP net income | $2.297 billion, compared with $872 million a year earlier. |
| AMD Q2 2026 GAAP gross margin | 54%, compared with 40% a year earlier. |
| AMD client business revenue | $3.1 billion, up 23% year over year. |
| AMD gaming business revenue | $779 million, down 31% year over year. |
| AMD embedded segment revenue | $977 million, up 19% year over year. |
Intel’s recovery provides a different comparison
Intel’s second-quarter results, announced on July 23, showed revenue rising 25% to $16.1 billion. Its Data Center and AI business generated $6.3 billion, up 59% from a year earlier.
AMD therefore grew faster at both the company level and in the named data center businesses. However, the two segment definitions are not identical, so those figures alone do not establish changes in server CPU market share.
Intel Chief Executive Lip-Bu Tan identified AI-driven demand across CPUs, custom chips, advanced packaging and manufacturing as growth opportunities. Both companies’ results point to broader computing demand, without proving an industry-wide transfer of investment from GPUs to CPUs.
The next test is delivery against the August outlook
AMD’s August 4 guidance projected third-quarter 2026 revenue of approximately $13 billion, plus or minus $300 million. The midpoint implied approximately 41% year-over-year growth and 13% sequential growth.
Chief Financial Officer Jean Hu also said AMD expected data center sales to accelerate in the second half of 2026. Those expectations should be distinguished from the completed second-quarter results; subsequent earnings will show whether the anticipated expansion materialized.
Conclusion
AMD’s second-quarter advantage was faster reported growth, supported by both server CPUs and AI GPUs. The next earnings update will provide the test of its August guidance and management’s expectation for stronger second-half data center sales.
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