AMD Plunges 9% After-Hours as Q3 Guidance Falls Short of Lofty Expectations
AMD has more than doubled off its 52-week low of $149.22.
Summary
AMD shares dropped 9% in extended trading after the company issued Q3 revenue guidance of $13 billion, below the $14 billion some analysts had projected. The Q2 results themselves were solid: revenue of $11.54 billion beat the $11.28 billion consensus, and EPS of $1.66 topped estimates by 4 cents. Data center revenue more than doubled to $6.7 billion, and management expects that momentum to accelerate in the second half. However, the guidance miss overshadowed the beat, especially given the stock's 132% year-to-date run. CEO Lisa Su highlighted market share gains against Intel and projected data center sales doubling in 2027, but traders focused on the near-term disappointment. This follows a series of positive catalysts, including a major Anthropic partnership and strong CPU demand visibility, making the guidance shortfall a sharp reversal in sentiment.
At the time of this announcement, AMD was trading at $472.94 on NASDAQ in the Technology sector, with a market capitalization of approximately $845.6B. The 52-week trading range was $149.22 to $584.73. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.