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AMD Stock Drops 6.9% Despite Record $11.5 Billion Revenue
Yahoo Finance • • business
Key Points:
- Advanced Micro Devices (AMD) reported a strong quarter with revenue rising 50% year over year to a record $11.54 billion, driven mainly by its Data Center segment, which more than doubled to $6.7 billion.
- Despite the impressive results and a positive outlook for roughly $13 billion in third-quarter revenue, AMD's stock fell 6.9% as investors remain cautious amid high expectations for AI-related growth.
- The Client division saw a 23% revenue increase, but the Gaming segment declined 31%, reflecting cooling demand in semi-custom products.
- AMD increased research and development spending by 33% to $2.53 billion to support its AI initiatives, while operating margins improved to 17% after previous export-control impacts.
- The stock is trading nearly double its GuruFocus fair value estimate, indicating that investors are pricing in sustained AI dominance, making flawless execution in upcoming quarters critical to meet lofty expectations.
