Compute / Accelerator Chips

Alright, coffee's hot, let's talk ball — AMD is in the fourth quarter of a real run, and the next two frames keep the momentum going. Here's how I'm reading the play. For 2026Q2, I'm penciling in roughly $10.8B in revenue with gross margin ticking up to about 53.5%. Two assumptions carry the weight: (1) data-center and AI accelerator demand keeps absorbing every Instinct and EPYC wafer we can ship, and (2) the client and gaming segments stabilize rather than slip back. Net income lands near $1.45B as operating leverage compounds — think of it as a team finally hitting its stride in the second half of the game, not chasing the first quarter. For 2026Q3, I bump revenue to about $11.5B with gross margin recovering to ~54%, riding the back-half seasonal tailwind and continued mix-shift toward higher-margin products. Net income pushes toward $1.61B, and we cross the symbolic $1 quarterly EPS mark for the first time in the model. The top risk? Supply. CoWoS-style packaging capacity is still the bottleneck that decides whether we score or stall. If allocation tightens, the whole forecast gets clipped — because in this league, you can't run a fast break without the ball in hand.