- Prev. close
- $594.22
- Volume
- 6.3M
- Market cap
- $956.8B
Stock and sector context
Semiconductorsoutflow- Sector comparison
- Of 4 covered Semiconductors stocks in US, 4 fell; the average change was -0.85%. AMD moved in the same direction at -1.24%. Estimated sector flow was outflow.
- Variables to watch
- US interest ratesNvidia earnings and share priceMemory chip pricesBig Tech data center capex
- Risks to check
- A turn in the memory price cycle
- Big Tech cutting capex
- Export controls
This compares price changes among covered stocks in the same market. It does not establish why prices moved. Variables and risks are sector reference lists.
Why a candidate
Match 10/100The match score marks how many conditions overlap on a 0 to 100 scale: the 52-week range, valuation metrics, price change and volume. It is not a probability of rising or a forecast return.
No standout signals right now.
Today's read
AMD scores 10 out of 100 on today's InverseOne match ranking, 30 of 30 in the US large-cap universe. It sits in the bottom 85% of its one-year price range, a neglected zone. Today's move of -1.24% came with money flowing out; the broader Semiconductors sector flow is worth checking. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-10-13 close, 10-14 00:20 KST updated, For reference only, not advice
StartupXO news featuring this company
Company research
Researched 2026-09-13 02:18 KSTAs of 27 June, not one share under the warrants that let OpenAI and Meta each buy up to 160 million AMD shares at $0.01 had become exercisable.
AMD designs and sells processors and accelerators for data centers, processors and graphics cards for PCs, and embedded chips for industrial equipment. Of $11,536 million of revenue in the second quarter of 2026, which ended on 27 June, $6,718 million came from the Data Center segment, and that segment swung from a $155 million operating loss a year earlier to $2,103 million of operating income. GAAP operating income for the quarter was $1,990 million and diluted earnings per share $1.38. The quarterly report also sets out warrants issued to OpenAI and Meta for up to 160 million shares each, and because no shares had vested or become exercisable by 27 June, nothing about them appears in the financial statements.
Key figures
- Quarterly revenue
- $11.54bn
- Q2 2026
- Data Center revenue
- $6.72bn
- Q2 2026
- GAAP operating income
- $1.99bn
- Q2 2026
- Diluted EPS
- $1.38
- Q2 2026
- Cash and short-term investments
- $13.11bn
- 2026-06-27
- Unconditional commitments
- About $30.3bn
- 2026-06-27
From a $155 million loss to $2,103 million of profit
AMD's Data Center segment booked $6,718 million of revenue in the second quarter of 2026, more than double the $3,240 million of a year earlier and 58 percent of the company total. The company credited demand for EPYC server processors and Instinct MI350 Series GPUs. Segment operating income swung from a $155 million loss to $2,103 million of profit. That comparison comes with a caveat: the year-ago quarter carried $800 million of inventory and related charges tied to U.S. government export controls on MI308 data center GPUs. The quarterly report attributes the improvement to higher revenue and the absence of those charges, partially offset by higher cost of sales and operating expenses. Against the previous quarter, revenue rose 16 percent from $5,775 million and operating income went from $1,599 million to $2,103 million.
Data Center segment operating income ($ millions)
Client and Gaming sold more and earned less
Client and Gaming revenue rose 6 percent from $3,621 million to $3,841 million, while operating income fell 24 percent from $767 million to $582 million, which the company put down to higher operating expenses. The two halves of the segment moved in opposite directions. Client revenue, from PC processors, grew 23 percent from $2,499 million to $3,062 million on a 34 percent rise in processor unit shipments and a 6 percent fall in average selling price. The quarterly report attributes the lower price to a shift in the Ryzen sales mix, including lower desktop Ryzen sales. Gaming revenue fell 31 percent from $1,122 million to $779 million, which the company attributed to lower semi-custom revenue. Embedded revenue of $977 million and operating income of $386 million were up 19 percent and 40 percent. Broken down by segment, the $2,124 million year-on-year gain in total operating income consists of $2,258 million added by Data Center and $111 million by Embedded, less $185 million from Client and Gaming and $60 million from the All Other category, which is not allocated to any segment.
Change in operating income on the year-ago quarter, by segment ($ millions)
- Data Center2258
- Embedded111
- Client and Gaming-185
- All Other-60
Capital spending more than doubled in one quarter
Capital expenditures were $808 million in the second quarter, more than double the $389 million of the previous quarter and about 2.9 times the $282 million of a year earlier. Operating cash flow from continuing operations fell from $2,955 million to $2,366 million, and free cash flow as calculated by the company dropped from $2,566 million to $1,558 million, even as revenue rose from $10,253 million to $11,536 million. The cash flow statement shows large working capital swings. In the second quarter a $1,246 million rise in accounts receivable and a $423 million rise in inventories drew cash out, while a $2,274 million rise in accounts payable offset that. Accounts payable stood at $5,359 million at the end of June, 83 percent above the $2,929 million at the end of 2025. Of $8,468 million of inventories, $5,265 million is work in process.
Quarterly capital expenditures ($ millions)
Commitments signed after 27 June, and the August notes
The liquidity section of the quarterly report lists what AMD has committed to pay. Unconditional commitments stood at approximately $30.3 billion on 27 June, of which $17.4 billion falls in the remainder of fiscal 2026. The company describes them as mainly obligations to buy wafers, substrates and components from third parties, multi-year cloud service provider arrangements, and software and technology licenses. Separately there are about $1.2 billion of leases that have commenced and $4.5 billion that have not. Guarantees of commercial partners' data center lease obligations carry a maximum exposure of $4.1 billion, and the company notes such guarantees may be issued in exchange for warrants. More commitments followed after the quarter closed: investment commitments of up to $5.0 billion, subject to certain conditions, and long-term data center leases with $9.5 billion of aggregate future payments over terms of up to 16 years, expected to commence in 2027 and 2028. On 17 August AMD closed a $4.75 billion senior notes offering: $1.25 billion at 4.600% due 2029, $1.50 billion at 5.000% due 2031, $1.00 billion at 5.250% due 2033 and $1.00 billion at 5.500% due 2036, with net proceeds for general corporate purposes that may include repayment of debt. At the end of June, debt principal was $3.25 billion and cash, cash equivalents and short-term investments were $13,111 million.
Commitments and guarantees in the quarterly report ($ millions)
- Unconditional30300
- Long-term leases9500
- Investments5000
- Leases not commenced4500
- Lease guarantees4100
320 million warrant shares, none exercisable yet
AMD signed multi-year agreements with OpenAI in October 2025 and with Meta in February 2026. According to the quarterly report, each customer intends to deploy up to 6 gigawatts of AMD data center GPUs, with the first gigawatt powered by Instinct MI450 Series products. Alongside the agreements AMD issued each customer a warrant to buy up to 160 million shares at an exercise price of $0.01 per share. The warrants vest in tranches tied to GPU purchase milestones and stock price targets, the OpenAI warrant also carries stock performance thresholds, and each vested tranche must still meet technical and commercial conditions before it can be exercised. The OpenAI warrant is exercisable through 5 October 2030 and the Meta warrant through 23 February 2031. As of 27 June no warrant shares had vested or become exercisable, and the warrants had no effect on the financial statements for the quarter or the half year. Together the two warrants cover 320 million shares, equal to 19.6 percent of the 1,632 million shares used for second quarter basic earnings per share. Of a $14 billion repurchase authorization, $9.2 billion remained at the end of June, and repurchases in the first half came to 1.1 million shares for $221 million.
Warrant dates
- 2025-10Warrant for up to 160 million shares issued to OpenAI
- 2026-02Warrant for up to 160 million shares issued to Meta
- 2026-06-27No warrant shares vested or exercisable
- 2030-10-05OpenAI warrant exercisable through this date
- 2031-02-23Meta warrant exercisable through this date
Senior notes closed on 2026-08-17, by maturity ($ millions)
Common questions
- Can the warrants AMD issued to OpenAI and Meta be exercised now?
- Not as of 27 June 2026. Each warrant gives the right to buy up to 160 million shares at $0.01 per share, but it vests only in tranches as GPU purchase milestones and stock price targets are met, and vested tranches must also satisfy technical and commercial conditions. The quarterly report states that no warrant shares had vested or become exercisable by that date.
- How did AMD explain the 31 percent fall in gaming revenue?
- Lower semi-custom revenue. Gaming revenue in the second quarter of 2026 was $779 million, down 31 percent from $1,122 million a year earlier. In the same segment, Client revenue rose 23 percent to $3,062 million as processor unit shipments grew 34 percent.
- How large were AMD's August notes, and at what rates?
- $4.75 billion in total, at rates from 4.600% to 5.500% depending on maturity: $1.25 billion at 4.600% due 2029, $1.50 billion at 5.000% due 2031, $1.00 billion at 5.250% due 2033 and $1.00 billion at 5.500% due 2036. The offering closed on 17 August 2026.
Sources
- 1.Second quarter 2026 earnings release (Form 8-K, Exhibit 99.1) U.S. Securities and Exchange Commission EDGAR, as of 2026-08-04
- 2.Quarterly report for the quarter ended 27 June 2026 (Form 10-Q) U.S. Securities and Exchange Commission EDGAR, as of 2026-08-05
- 3.Closing of $4.75 billion senior notes offering (Form 8-K) U.S. Securities and Exchange Commission EDGAR, as of 2026-08-17
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
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