AMD Stock Dips After Earnings Report
AMD stock fell in after-hours trading Tuesday despite the chipmaker posting solid revenue growth in the second quarter. The company matched Wall Street’s earnings forecast while surpassing sales expectations, but investor sentiment cooled after the report.
Earnings Meet, Sales Beat Expectations
In Q2, Advanced Micro Devices earned an adjusted 48 cents per share on $7.69 billion in revenue. Analysts had predicted identical earnings but lower sales of $7.41 billion. While revenue climbed 32% year over year, earnings dropped 30% due to higher costs and one-time charges.
Export Restrictions Take a Toll
U.S. government export rules prevented AMD from selling its Instinct MI308 data center processors to China. This restriction led to about $800 million in inventory and related charges during the quarter.
Looking ahead, AMD forecasts $8.7 billion in Q3 revenue, above Wall Street’s $8.32 billion estimate. A year earlier, the company reported $6.82 billion in the same period.
CEO Points to Strong Product Demand
“We delivered strong revenue growth in the second quarter led by record server and PC processor sales,” said CEO Lisa Su. She added that demand across computing and AI products remains strong, with major growth expected in the second half of 2025. The ramp-up of Instinct MI350 accelerators and continued Epyc and Ryzen market share gains will be key drivers.
Segment Performance Shows Momentum
Data Center Revenue: $3.2 billion, up 14% year over year.
PC Chip Revenue: $2.5 billion, up 67%, fueled by strong Zen 5 Ryzen desktop processor sales.
Gaming Chip Revenue: $1.1 billion, up 73%, boosted by Radeon graphics card demand.
Stock Reaction Turns Negative
AMD shares initially rose after the announcement but later fell 3% to $167.99 in after-hours trading. The stock had already dropped 1.4% during the regular session to close at $174.31.
Industry Moves Beyond AMD
Other semiconductor stocks also made headlines this week:
Arteris stock surged 37.6% after AMD licensed its FlexGen network-on-chip IP for future AI chiplet designs.
Lattice Semiconductor rose on an upbeat Q3 forecast, benefiting from AI server and networking demand.
ON Semiconductor slipped after modest guidance, citing a slow rebound in industrial and automotive markets.
GlobalFoundries and Silicon Labs fell on disappointing Q2 results.
Tower Semiconductor gained on better-than-expected earnings.
Despite export challenges, AMD’s sales growth and AI market positioning show the company’s competitive strength. However, investor caution reflects the delicate balance between growth potential and global trade risks.
Stay tuned to Maple Wire for more on the chip industry and market trends.
