AMD Stock Drops 7% Despite Q2 Revenue Beat
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- AMD forecast third-quarter revenue of approximately $13 billion (plus or minus $300 million), ahead of the $12.52 billion analyst estimate compiled by LSEG.
- AMD shares dropped more than 7% in extended trading despite the revenue beat, as investors who saw the stock more than double this year on AI optimism wanted a stronger outlook.
- AMD's second-quarter revenue jumped 50% to $11.54 billion, beating the $11.28 billion estimate, with data-center revenue more than doubling to $6.72 billion (above the $6.48 billion estimate).
- AMD agreed roughly two weeks earlier to sell Anthropic tens of billions of dollars in AI servers powered by up to 2 gigawatts of MI450 chips starting early 2027, while investing up to $5 billion in the Claude maker contingent on deployment milestones.
- AMD locked in up to 2.5 gigawatts of data-center capacity through a deal with Core Scientific, gaining warrants to purchase that company's stock.
- AMD is constrained by its reliance on TSMC, where tight advanced packaging capacity remains a key hurdle to meeting demand.
- CEO Lisa Su said AMD's second-generation Helios AI servers, featuring the MI455X AI accelerator and TSMC-made "Venice" processor, are in full production and shipping in the coming months.
Why it matters: With data-center revenue more than doubling to $6.72B and a $13B Q3 forecast beating estimates, AMD's challenge to Nvidia is delivering — but the 7%+ after-hours drop shows investors wanted more from a stock that already doubled this year. AMD is now valued like a hyperscaler, not a chip underdog, per Emarketer analyst Jacob Bourne.
