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AMD shares fall after revenue beat and data center guidance miss
AMD reported $11.54 billion in revenue, a 50% gain, but its current-quarter guidance of about $13.0 billion came in below $14.0 billion expectations.
Advanced Micro Devices, Inc. reported results that beat Wall Street expectations across the board on Tuesday, driven by a sharp jump in data center revenue tied to its AI chips. The company posted $11.54 billion in revenue versus the $11.28 billion analysts expected, with adjusted earnings of $1.66 per share compared with $1.62 expected, according to Yahoo Finance.
Data center sales, described as central to the company’s AI outlook, more than doubled to $6.7 billion. Year over year, AMD’s data center revenue rose 107%, while its client and gaming chip business grew 6%, suggesting the AI story is carrying most of the growth.
Despite the top and bottom line beat, AMD stock was down as much as 10% in extended trading after investors reacted to guidance. For the current quarter, AMD projected about $13 billion in revenue, which was below the roughly $14 billion some analysts hoped for, though it still topped the $12.52 billion Wall Street consensus.
AMD also raised its estimate for the long term total semiconductor market, now projecting $2 trillion a year in total spending by 2028, including $1.4 trillion from AI accelerators. The company said it is starting to ship its first full rack scale AI system, Helios, to customers including Meta, OpenAI, and Oracle, and CFO Jean Hu said data center sales should accelerate in the second half of 2026.