AMD falls as investors seek bigger AI payoff
FILE PHOTO: The AMD logo, on display at HPE Discover Las Vegas 2026, in Las Vegas, Nevada, U.S., June 16, 2026. REUTERS/Caroline Brehman/File Photo
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Aug 5 : Advanced Micro Devices shares declined before the bell on Wednesday as the chipmaker’s stronger-than-expected revenue forecast fell short of lofty expectations and investors sought clearer signs that a multibillion-dollar AI spending boom will translate into faster growth.
The shares were last down 7.4 per cent at $480.28, set to wipe out about $61.1 billion from AMD’s market value.
The move underscores elevated expectations facing AMD as it aims to challenge Nvidia’s dominance amid intensifying competition with Intel racing to regain technology leadership after strong results.
“We suspect expectations had moved higher following Intel’s results a couple of weeks ago, and the buyside already has a fairly bullish outlook,” said Stacy Rasgon, analyst at Bernstein.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Analysts at TD Cowen called AMD’s results and forecast “objectively good” but said the stock was facing a “very high bar” following recent AI-related customer announcements and the sharp rally in the shares.
The Santa Clara, California-based company forecast third-quarter revenue of about $13 billion, plus or minus $300 million, above analysts’ estimates of $12.52 billion, according to data compiled by LSEG.
Investors have more than doubled AMD’s stock this year on expectations that the company will emerge as the leading alternative to Nvidia in AI chips, raising the bar for quarterly results.
Chief Executive Lisa Su said AMD expects data-center revenue to more than double by 2027 and projected total revenue growth above its previously outlined target of more than 35 per cent. AMD’s data-center revenue more than doubled to $6.72 billion, topping expectations.
Last month, the company signed deals with Anthropic and Core Scientific to bolster its AI infrastructure ambitions.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
