{"id":982378,"date":"2026-08-05T13:31:28","date_gmt":"2026-08-05T13:31:28","guid":{"rendered":"https:\/\/www.europesays.com\/us\/982378\/"},"modified":"2026-08-05T13:31:28","modified_gmt":"2026-08-05T13:31:28","slug":"this-was-not-an-exceptional-result-why-amd-stock-tanked-10-after-earnings","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/982378\/","title":{"rendered":"‘This was not an exceptional result’: Why AMD stock tanked 10% after earnings"},"content":{"rendered":"\n

What happened: <\/strong>Advanced Micro Devices (AMD<\/a>) dropped 8% in premarket trading on Wednesday. <\/p>\n

What’s behind the move: <\/strong>The chipmaker reported record revenue<\/a> and second quarter earnings on Tuesday, beating Wall Street expectations on both top and bottom lines. <\/p>\n

However, the company’s results and forecast failed to impress investors looking for bigger beats. <\/p>\n

“It was priced for something much closer to a blowout,” Shay Boloor, Futurum chief market strategist, told Yahoo Finance after the earnings report. “It was priced for an exceptional result, and this was not an exceptional result.” <\/p>\n

AMD reported revenue of $11.54 billion, up 50% from $7.69 billion a year prior, topping Wall Street expectations. Adjusted earnings per share came in at $1.66 against the $1.62 expected. <\/p>\n

Wall Street even expected booming growth in data center revenue, which more than doubled year-over-year and now represents 58% of total revenue, up from 42% a year ago. <\/p>\n

“The company did beat across the board, but it wasn’t enough to reset expectations for a stock that’s trading nearly 60 times earnings,” Boloor said. <\/p>\n

Capital expenditures also increased significantly, reaching $808 million for the quarter, up from $282 million in the year-ago period and $389 million in the March quarter. <\/p>\n

“That’s a shocking upside revision for the capex number,” the strategist added. <\/p>\n

What else you need to know: <\/strong>For the current quarter, AMD expects revenue of approximately $13 billion, plus or minus $300 million. While that exceeds some analyst estimates of $12.5 billion, it falls short of the highest forecasts, which called for up to $14 billion. <\/p>\n

The company also warned of a slowing PC market, though it expects to outperform the broader industry. <\/p>\n

“Looking to the second half of the year, we’re planning for a softer PC market as higher memory and component costs weigh on demand,” CEO Dr. Lisa Su said during the company’s earnings call. <\/p>\n

“Against this backdrop, we expect our client business to perform better than the market,” she added. <\/p>\n

AMD noted that Gaming graphics revenue declined year over year, as higher industrywide component costs drove up graphics card prices and weighed on overall demand. <\/p>\n

Like many semiconductor stocks, AMD has posted an impressive gain this year, though the shares have experienced periods of volatility in recent months. The stock is down more than 10% from its June all-time high, but it remained up more than 140% year to date as of Tuesday’s close. <\/p>\n

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre<\/a>. <\/p>\n

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