AMD targets more than 80 percent growth in servers for the second half

AMD has put numbers on its growth targets for artificial intelligence. The chipmaker is aiming for revenue growth of more than 80 percent in its server business in the second half of 2026, supported by commitments from several large cloud providers.

The most important of these deals concerns Oracle. According to a joint announcement, Oracle will be the first large provider to run a publicly available cluster based on the next generation of AMD graphics processors.

The build out starts in the third quarter of this year with an initial 50,000 units. Further stages are planned for 2027 and the years after.

The cooperation goes back several years. As early as 2024 Oracle had made offerings based on the previous AMD generation available in its cloud infrastructure.

The short version

• AMD is aiming for revenue growth of more than 80 percent in its server business in the second half of 2026.
• Oracle becomes the first large provider with a publicly available cluster based on the next AMD generation, starting with 50,000 units.
• Nvidia dominates the market for accelerators and is currently valued at around 5.1 trillion dollars.

The second supplier alongside Nvidia

For context it matters what role AMD plays in this market. Nvidia dominates the business with accelerators for artificial intelligence and is currently valued at around 5.1 trillion dollars.

AMD is the second serious supplier of graphics processors for these tasks. For operators of data centres that matters for two reasons. A second supplier improves the negotiating position on price. And it reduces the risk of standing without capacity when deliveries are tight.

That explains why large providers are willing to build AMD clusters alongside Nvidia, even though the software environment of the market leader is more widely used.

A comparison from the same industry shows the scale of the competition. Broadcom develops custom chips for four large customers, among them Google, Meta Platforms, TikTok owner ByteDance and OpenAI. Those chips compete for the same tasks.

Bernstein prefers one of the two stocks

On 13 August Bernstein compared AMD directly with Intel and rated one of the two a buy and the other a hold.

Intel had shortly before completed a share sale of 20 billion dollars and is also considering a return to the memory chip business. The Intel share is up 175 percent in 2026.

AMD performed unevenly in that environment. On 12 August the share rose together with Micron, Nvidia, Intel and Super Micro, while on other days it gave way amid general weakness in technology stocks.

Memory is the strongest area at the moment

Within the semiconductor industry a different area currently delivers the highest growth. Micron last traded at 971.66 dollars and is up 208 percent since the start of the year. On Monday the stock added a further 3.5 percent before the open.

The trigger was a revenue forecast from Anthropic, which expects around 190 to 200 billion dollars for 2028. That figure supported the whole group of stocks whose business depends on the build out of data centres on Monday.

For AMD the number matters from two directions. It describes demand that carries over the coming years. At the same time it sharpens the question of how the build out is financed and who takes the risk if utilisation falls short of the assumptions.

Frequently asked questions

Why do cloud providers build AMD clusters alongside Nvidia

For two reasons. A second supplier improves the negotiating position on price. And it reduces the risk of standing without capacity when deliveries are tight. That holds even though the software environment of the market leader is more widely used.

What does the agreement with Oracle cover

According to a joint announcement Oracle will be the first large provider to run a publicly available cluster based on the next generation of AMD graphics processors. The build out starts in the third quarter with an initial 50,000 units, and further stages are planned for 2027 and the years after.

Which semiconductor area is growing fastest right now

The memory area. Micron last traded at 971.66 dollars and is up 208 percent since the start of the year. The trigger was a revenue forecast from Anthropic, which expects around 190 to 200 billion dollars for 2028.

This analysis is for information only and is not investment advice.