Advanced Micro Devices reported robust financial results in the second quarter but saw its stock decline on investor concerns about market expectations. CEO Lisa Su responded to recent comments from Elon Musk regarding SpaceX’s artificial intelligence chip strategy, stating the company looked forward to continuing partnerships across the technology sector. Musk had indicated on the previous day’s earnings call that Nvidia possessed superior architecture and highlighted close cooperation with that company, reversing a May 2025 statement to CNBC that suggested openness to purchasing from multiple chipmakers.
AMD’s second-quarter revenue reached $11.54 billion, surpassing analyst expectations of $11.28 billion and representing 50% growth. Data center operations drove much of this expansion, with that segment rising 107% year-over-year to $6.7 billion, fueled by central processing unit and graphics processing unit sales. The company provided guidance for Data Center segment growth exceeding 100% and projected server revenue increases of 80% year-over-year for the second half of 2026, with growth exceeding 70% anticipated for 2027.
Despite posting strong earnings, shares fell 7%, while Nvidia gained 3.4%. Analysts attributed the decline partly to investor skepticism regarding artificial intelligence stocks and valuations that had climbed substantially. The stock had appreciated 132% year-to-date heading into these results, trading at a price-to-earnings multiple of 170. Su indicated during the earnings call that customers were signaling significantly increased demand for computing capacity and providing greater visibility for planning purposes, prompting the company to expand supply chain investments across the ecosystem.
The company had recently raised its projections for the semiconductor industry’s worth, estimating it could reach $2 trillion annually by 2028, with artificial intelligence accelerators representing $1.4 trillion of that figure, up from a prior estimate of $500 billion for the same period.
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