AMD Tumbles 6.6% Despite Beating Forecasts
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- AMD shares fell 6.6% to $482.53, erasing close to $59 billion in market value despite a forecast that topped Wall Street estimates
- AMD guided Q3 revenue to ~$13 billion (±$300 million), above the $12.52 billion LSEG analyst consensus — yet TD Cowen said the bar was 'very high' after a year-to-date rally of more than 100%
- Elon Musk's SpaceX decision to build computing infrastructure exclusively with Nvidia chips compounded the selloff; Nvidia shares gained 3.3% on the news
- AMD data-center revenue more than doubled to $6.72 billion last quarter, with CEO Lisa Su projecting that segment to more than double again by 2027 and overall revenue growth above 35%
- AMD has signed recent high-profile deals with Anthropic and Core Scientific aimed at closing the gap on Nvidia and Intel, the article notes
- J.P. Morgan flagged supply constraints through 2027, with projects concentrated on TSMC's N3 process and CoWoS chip-packaging technology likely to face tightness
Why it matters: AMD beat consensus estimates and still lost $59 billion in market value — a stark signal that investors now price AMD as an AI infrastructure winner, not a mere follower, and any signal short of accelerating data-center dominance triggers repricing. The SpaceX-Nvidia exclusive adds a concrete second-order hit: a high-profile customer publicly routing around AMD just as it tries to win over cloud and AI buyers.
