The 'Problem' With AMD's Guidance

Advanced Micro Devices, Inc. delivered robust Q2 results, with Data Center revenues accelerating 107% to $6.7B and gross margins expanding to 56%. Management projects server CPU revenue to grow over 80% y/y in H2 2026 and over 70% for 2027, with Data Center segment revenue expected to more than double in 2027. Despite market disappointment over conservative guidance, I see this as a buying opportunity given AMD's strong growth trajectory and margin expansion.