AMD stock falls after earnings beat as outlook misses higher hopes

AMD stock falls after earnings: Shares were down 8.2% in Wednesday premarket trading, following a decline in extended trading after the company released second-quarter results on Aug. 4. For shareholders, the move put the focus on how AMD’s outlook compared with the highest expectations around its artificial-intelligence chip business, rather than on the quarter’s headline beat alone.

Advanced Micro Devices reported adjusted earnings of $1.66 a share on $11.54 billion in revenue for the quarter ended June 27. That compared with LSEG consensus estimates of $1.62 a share and $11.28 billion in revenue, CNBC reported.

AMD’s own release put revenue at $11.536 billion, up 50% from a year earlier. GAAP net income was $2.297 billion, or $1.38 per diluted share, while non-GAAP net income was $2.760 billion, or $1.66 per diluted share.

Why did AMD stock fall after earnings?

AMD forecast current-quarter revenue of about $13 billion, plus or minus $300 million. That midpoint was above the $12.52 billion LSEG expectation cited by CNBC, but CNBC also reported that some analysts had been looking for guidance as high as $14 billion.

Deutsche Bank described the second-quarter results as slightly ahead of consensus but below more optimistic estimates, according to CNBC. That assessment offers one explanation for the negative market reaction, but it does not establish a single cause for the premarket move.

The share-price backdrop was also notable: CNBC reported that AMD had gained 132% so far in 2026 before Wednesday’s premarket decline.

Data Center business drove AMD’s growth

AMD’s Data Center segment generated $6.7 billion in revenue, up 107% from a year earlier. The company attributed the growth to demand for EPYC processors and Instinct GPUs. The segment represented 58% of AMD’s quarterly revenue, Chief Financial Officer Jean Hu said in the release.

Other businesses delivered a more mixed picture. Client and Gaming revenue rose 6% to $3.8 billion. Within that segment, client revenue increased 23% to $3.1 billion, while gaming revenue fell 31% to $779 million. Embedded revenue increased 19% to $977 million.

AMD said it expects Data Center sales to accelerate in the second half of 2026. On its earnings call, Chief Executive Lisa Su said the company expects Data Center sales to double in 2027 and server revenue to rise more than 80% year over year in the second half of fiscal 2026. Those are management forecasts, not reported results.

The company also said it will begin shipping its Helios AI rack system during the current quarter and expects shipments to build in the fourth quarter. AMD reported capital expenditures of $808 million, compared with $282 million a year earlier.

This story draws on original reporting from CNBC.