AMD Drops 5% as $13B Guidance Falls Short of Bullish Forecasts
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- AMD dropped 5.32% in early trading Wednesday after its Q2 results, which topped revenue and EPS estimates, failed to meet investor expectations for a blowout quarter.
- AMD reported record revenue of $11.54 billion, up 50% YoY from $7.69 billion, with adjusted EPS of $1.66 versus the $1.62 consensus; data center revenue more than doubled YoY and now represents 58% of total revenue, up from 42% a year ago.
- AMD guided Q3 revenue to approximately $13 billion (plus or minus $300 million), exceeding the $12.5 billion analyst consensus but falling short of bullish forecasts calling for up to $14 billion.
- AMD capital expenditures surged to $808 million for the quarter, up from $282 million a year earlier — a figure Futurum's Shay Boloor called a "shocking upside revision."
- CEO Lisa Su warned of a "softer PC market" in the second half as higher memory and component costs weigh on demand, though she said AMD's client business should outperform the broader industry.
- AMD gaming graphics revenue declined YoY as industrywide component costs drove up graphics card prices and weighed on demand.
- AMD stock is down more than 10% from its June all-time high but remains up more than 140% year to date as of Tuesday's close.
Why it matters: AMD trades at nearly 60 times earnings on a stock priced for blowout beats, so even a record quarter couldn't satisfy expectations — and the $13 billion guide gave bulls nothing to chase. The tripling of capex to $808 million signals management is aggressively funding capacity, while Lisa Su's PC-market warning and gaming graphics decline show the AI-driven data center boom isn't insulating AMD from broader chip-sector softness.
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