AMD plummets 8% in premarket trading despite beating expectations
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- AMD stock plunged 8.2% in premarket trading on Wednesday despite posting Q2 revenue of $11.54 billion, beating analyst expectations of $11.28 billion
- AMD data center sales surged 107% annually to $6.7 billion, driven by CPU and GPU sales and underscoring the chipmaker's central position in AI chips
- Deutsche Bank analysts noted AMD's earnings landed "slightly ahead" of consensus but below "more optimistic estimates," framing the source of the selloff
- AMD has gained 132% year-to-date, buoyed by investor confidence in the company's GPU and CPU products as an Nvidia challenger
- Lisa Su said "AI is driving a significant expansion in demand for compute across all of our markets," positioning AMD's leadership portfolio to capture the opportunity
- AMD projected in July that the semiconductor industry could reach $2 trillion annually by 2028, with $1.4 trillion from AI accelerators — up from a prior $500 billion estimate
Why it matters: AMD beat consensus by roughly $260 million and still dropped 8% premarket, with Deutsche Bank pinning the reaction on the gap to "more optimistic estimates" — meaning the stock's 132% year-to-date run has repriced the bar from in-line beats to blowout beats. Data center revenue up 107% to $6.7 billion shows the AI thesis is still intact underneath the multiple compression.
