American Century Fund Credits AMD for Second-Quarter Gains Amid AI Surge

SAN FRANCISCO — American Century Investments' Focused Dynamic Growth Fund reported that Advanced Micro Devices Inc. was a primary driver of its performance during the second quarter of 2026, as investor demand for artificial intelligence infrastructure continued to reshape the semiconductor landscape.

In an investor letter released Wednesday, the fund highlighted AMD's significant contribution to portfolio returns, citing robust earnings and expanding market share in data center processors. The disclosure comes as the broader technology sector navigates a period of intense growth fueled by the deployment of generative AI models across enterprise and consumer applications.

The fund's managers noted that AMD's position as a leading supplier of high-performance computing chips allowed it to capitalize on surging orders from major cloud service providers. The company's ability to compete directly with rival Nvidia Corp. in the accelerator market has been a focal point for growth-oriented investors seeking exposure to the AI boom without relying solely on the industry leader.

"The second quarter underscored the critical role of semiconductor innovation in powering the next generation of digital infrastructure," the letter stated. The fund's allocation strategy prioritized companies with strong balance sheets and clear pathways to monetize AI technologies, placing AMD at the center of its holdings.

Market analysts have observed that the rally in chip stocks has been sustained by tangible revenue growth rather than speculative trading, a trend that benefited funds like American Century's Focused Dynamic Growth. The fund's performance in the quarter outpaced several broad market benchmarks, largely attributed to the weight given to semiconductor and software names tied to AI development.

However, the rapid pace of expansion has raised questions regarding supply chain constraints and potential regulatory scrutiny. While demand remains high, industry observers are watching closely for signs of a slowdown in capital expenditure among major tech firms, which could impact future earnings guidance for chipmakers.

The fund's letter did not specify the exact percentage of the portfolio held in AMD, nor did it detail any recent changes to its top ten holdings beyond the general performance attribution. American Century Investments has historically maintained a flexible approach to sector rotation, adjusting positions based on macroeconomic indicators and technological adoption rates.

As the third quarter begins, investors will be looking for further clarity on whether the momentum in AI-related equities can sustain itself through late 2026. The fund's managers indicated that they remain committed to monitoring the competitive dynamics within the chip sector, particularly as new product cycles emerge and global trade policies evolve.

The release of the investor letter marks a standard quarterly communication for the fund, providing shareholders with an update on strategy and results. With the technology sector remaining volatile, the performance of key holdings like AMD will likely continue to influence the fund's trajectory in the coming months.