AMD Stock Drops 7% Despite 50% Revenue Beat — SkimNews
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- AMD posted Q2 revenue of $11.54 billion (up 50%) and adjusted EPS of $1.66, beating estimates of $11.28 billion and $1.62, while data-center revenue more than doubled to $6.72 billion (vs. $6.48 billion expected).
- AMD shares dropped more than 7% in extended trading despite the beat, as investors wanted a stronger outlook after the stock doubled year-to-date on AI optimism.
- AMD forecast Q3 revenue of approximately $13 billion (±$300M), topping the $12.52 billion analyst estimate, with adjusted gross margin around 56% — in line with expectations.
- Anthropic will receive tens of billions of dollars worth of AI servers from AMD powered by up to 2 gigawatts of MI450 chips from early 2027, with AMD committing up to $5 billion tied to deployment milestones.
- Core Scientific will provide AMD up to 2.5 gigawatts of data-center capacity, with AMD receiving warrants to purchase the company's stock as part of the deal.
- AMD's second-generation Helios AI servers, featuring the MI455X AI accelerator and TSMC's "Venice" processor, are in full production and begin shipping in the coming months, per CEO Lisa Su.
- Intel is losing CPU market share to AMD, as growing demand for central processing units used alongside GPUs in AI servers boosts AMD's broader data-center business.
Why it matters: AMD beat both Q2 and Q3 estimates but its 7%+ stock drop after a doubled YTD gain shows investors now demand proof that AI infrastructure spending converts to accelerating returns, not just growth. The multi-billion-dollar Anthropic deal and 2.5 GW Core Scientific agreement tie AMD's expansion tightly to TSMC's constrained advanced packaging capacity.
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