AMD: AMD Stock Slips 4% Despite Big Revenue Jump and Solid Earnings Figures

Second-largest GPU maker couldn’t ride the waves of earnings enthusiasm like its big peers in the tech realm. But it didn’t even miss the earnings forecast. So why the selloff?

☕ Revenue Beats, Stock Retreats

• AMD stock AMD dropped 4% in after-hours trading Tuesday following the company’s fiscal second-quarter earnings update. Let’s jump right in.
• Revenue of $7.68 billion surpassed expectations of $7.42 billion and marked 32% growth from last year. But investors wanted more — otherwise, why have they been buying in boatloads for the past three months, sending the stock higher by 70%?
• Earnings per share met the target at 48 cents a pop — nothing mindblowing about it. Apparently, the bar was set higher than what the print delivered. “We don’t want consensus-meeting figures, we want knock-it-out-the-park updates!” – investors, probably.

🔎 Strong Demand, Stronger Guidance

• Fundamentals time: AMD’s data center segment brought in $3.2 billion, a 14% year-on-year jump, fueled by robust demand for AI and cloud computing chips.
• The company forecast third-quarter revenue of $8.7 billion at midpoint, comfortably above Wall Street’s consensus of $8.3 billion — another sign that AI tailwinds are far from over.
• CEO Lisa Su sounded confident: “We’re well positioned to deliver significant growth in the second half.” Translation: don’t count us out just yet, our moment is coming.

🤗 Still Nvidia’s Little Cousin

• AMD is the second-largest GPU player, behind only Nvidia NVDA, and sits at the heart of the AI infrastructure boom. But in a market that rewards dominance, second place can feel like a shrug. (Fast fact: Nvidia’s Jensen Huang and Lisa Su are first cousins.)
• Despite today’s dip, AMD shares are up more than 44% on the year, thanks to a wave of optimism around increased AI spending from Big Tech.
• Still, with peers like Meta META and Microsoft MSFT posting monster beats, AMD’s numbers — though solid — just didn’t light the same kind of fire.