AMD forecasts upbeat revenue on strong AI chip demand, but shares fall on lofty expectations
AMD said third-quarter revenue will reach about $13 billion, but shares slid more than 7% as investors wanted a stronger outlook.
- On Tuesday, Advanced Micro Devices, Inc. reported second-quarter revenue of $11.54 billion, beating estimates, yet shares fell 8.8% in extended trading as investors sought stronger guidance.
- Data-Center revenue surged 107% to $6.72 billion, accounting for 58% of total sales, driven by massive demand for AI technologies powering infrastructure expansions.
- Adjusted profit reached $1.66 per share, surpassing the $1.62 consensus, while the client and gaming segment delivered $3.84 billion in sales.
- CEO Lisa Su noted server CPU supply remains tight from unforecasted demand, though software open-source contributions reached an "inflection point" to accelerate development.
- Su expects the server supply situation to improve by 2027, while analysts anticipate capital expenditures by data-center owners could exceed $1 trillion that year.
45 Articles
45 Articles
Why AMD's solid quarterly earnings failed to impress investors
AMD beat earnings estimates and issued strong guidance, but its shares fell as investors sought bigger AI gains, higher margins and stronger evidence it can challenge Nvidia's dominance in AI chips.
41 Buy Ratings and No Sells: Why Wall Street Backs AMD
Wall Street has piled 41 buy ratings onto AMD with zero sells, yet shares just cratered after a blowout quarter. Something about this setup does not add up, and the answer points toward a price target most analysts have not caught up to yet.
AMD (NASDAQ: AMD) Beats On Revenue And Earnings But Investor Concerns Over Customer Concentration Send Shares Down 9%
Advanced Micro Devices Inc (NASDAQ: AMD) delivered a quarter that largely met bullish expectations, yet shares still fell nearly 9% in extended trading following the results. Revenue came in at $11.5 billion, up 50% year on year and ahead of the $11.28 billion analyst consensus, while adjusted earnings of $1.66 per share beat forecasts of approximately $1.60. Data center revenue, now the company’s most closely watched segment, more than doubled …
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