Core Viewpoint - AMD's second-quarter earnings fell short of expectations, leading to a nearly 5% drop in pre-market trading, despite a year-over-year revenue increase of 32% to $7.7 billion, surpassing analyst expectations of $7.43 billion [1] Financial Performance - AMD reported second-quarter revenue of $7.685 billion, a 32% year-over-year increase and a 3% quarter-over-quarter increase, exceeding market expectations by $270 million [2] - Adjusted earnings per share were $0.48, slightly below the Wall Street expectation of $0.49 [1] - The data center business revenue grew 14% to $3.2 billion, slightly below the market expectation of $3.25 billion [1] Analyst Ratings and Price Targets - Benchmark reiterated a "Buy" rating for AMD, raising the target price from $170 to $210, citing strong second-quarter results and encouraging third-quarter guidance of $8.7 billion in revenue, which is a 28% year-over-year increase [2] - KeyBanc maintained a "Hold" rating, noting strong revenue driven by server and gaming businesses, with expectations of double-digit growth in server CPUs [3] - Oppenheimer kept a "Market Perform" rating, acknowledging AMD's performance and outlook but remaining cautious until a clearer path to sustained outperformance is established [3] - Mizuho raised its target price for AMD from $175 to $183 [4] Growth Drivers - AMD's revenue growth was attributed to increased market share in EPYC server CPUs and Ryzen client CPUs, tight supply of Radeon desktop GPUs, and rising shipments of semi-custom gaming consoles [2] - The third-quarter growth is expected to be driven by strong double-digit growth in the data center segment, particularly with the production ramp-up of MI350 [3]