• 2Q26 revenue was within our expectations, 1H26 revenue at 43% of our FY26e forecast on the back of an expected sequentially stronger 2H26e. 2Q26 adj. PATMI was below our expectations, 1H26 adj. PATMI at 41% of FY26e forecasts. Gaming revenue (7% of 2Q26 revenue) was weaker than expected, declining for the first time since 1Q25, as semi-custom enters a cyclical downturn and higher memory costs weigh on graphics sales.
• Data centre revenue surged 107% YoY to US$6.3bn in 2Q26, the biggest YoY growth since 3Q24, driven by MI350 GPU demand broadening across AI labs, cloud providers, leading AI start-ups, and sovereign AI deployment. Data centre revenue is guided to more than double YoY in 2027, driven by the volume ramp of Helios, MI450 GPU, and sixth-generation Venice server CPU. AMD’s server CPU sales increased more than 70% YoY, outperforming Intel’s data centre and AI (DCAI) segment’s 59% YoY growth.
• We maintain BUY, TP unchanged at US$755. We lowered our FY26e PATMI forecast by 8% due to the softer demand in client and gaming segment. We expect both client and gaming to enter a cyclical downturn due to higher memory costs. We raised FY27e revenue/PATMI assumptions by 4% each, as Helios, MI450 GPU and Venice server CPU demand visibility increases. Anthropic is expected to deploy 2 gigawatts of MI450 GPUs in Helios starting from 1H27e, which we estimate could bring AMD an additional US$30bn in revenue (87% of FY25 revenue). AMD trades at 69.9x FY26e P/E, a 3% premium to its historical one standard deviation from mean value of 67.8x. We believe the premium is justified as AMD’s GPU and server CPU are well-positioned to capture rising demand from the adoption of agentic AI.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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