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AMD shares slide after beat-and-raise as AI product deliveries near
AMD reported $11.5 billion in net revenue, and management flagged initial MI450 and Helios deliveries by quarter end with sequential ramps.
Advanced Micro Devices shares pulled back after a beat-and-raise earnings release, even as the company said it is moving further into AI-related product deliveries. The pullback followed what the outlet described as a combination of lofty expectations and an earnings report it characterized as understated.
According to MarketBeat Ratings, AMD’s release included $11.5 billion in net revenue, up 13% sequentially and more than 50% year over year. The company also widened margins at all levels and posted operating earnings of $3.1 billion, about 27% of revenue, while adjusted earnings per share rose to $1.66.
The outlet also pointed to stronger guidance and continued momentum across AMD segments, noting that Data Center more than doubled and Embedded grew by nearly 20%. It said Gaming contracted by 31% due to end-market weakness, but those results were offset by the strength in Data Center, including CPUs and GPUs.
For the next steps, MarketBeat Ratings highlighted that AMD expects initial deliveries of MI450 and Helios products by the end of the quarter, with deliveries ramping sequentially. The story added that free cash flow came in at $1.6 billion, supporting balance sheet improvement, reinvestment, and capital returns.