AMD Shares Drop Despite Beating Revenue Forecasts
AMD forecast third-quarter revenue of $13 billion, exceeding estimates, but shares fell as investors demanded higher growth in the AI chip market.
Advanced Micro Devices (AMD) forecast third-quarter revenue of approximately US$13 billion, surpassing Wall Street's estimate of US$12.52 billion. This outlook follows a strong second quarter where revenue jumped 50% to US$11.54 billion, fueled by significant demand for AI chips and the expansion of data-center capacity.
Despite the positive financial indicators, shares of AMD fell more than 7% in extended trading. Investors appeared to seek a more aggressive growth trajectory as the company attempts to challenge the market dominance of Nvidia by expanding its AI product launches and offering integrated AI systems.
To scale its operations, the company secured a deal with Core Scientific for up to 2.5 GW of data center capacity and agreed to sell tens of billions of dollars in AI servers to Anthropic. CEO Lisa Su announced that second-generation Helios AI servers have entered full production. However, AMD continues to face supply constraints resulting from its reliance on the advanced packaging capacity of TSMC.
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