Advanced Micro Devices (AMD) shares drop 5% despite record second-quarter revenue and earnings beating Wall Street expectations.
Advanced Micro Devices (AMD) shares fell 5% in early trading on Wednesday after the company reported record second-quarter revenue of $11.54 billion, a 50% increase from the previous year. While the results beat analyst expectations for both top and bottom lines, the stock price declined because investor enthusiasm was high and the results were not as exceptional as the market had anticipated. Data center sales were a primary driver of growth, more than doubling year-over-year to reach $6.7 billion. Dr. Lisa Su, the chair and CEO of Advanced Micro Devices (AMD), noted that AI is driving a significant expansion in demand for compute across all markets. Despite the near-term volatility, analysts remain optimistic about the long. term outlook, with the company projecting significant growth in server CPU revenue and AI GPUs through 2027. The stock has seen impressive gains this year, remaining up over 140% year to date.