Advanced Micro Devices experienced a significant decline in its share price following the release of second-quarter earnings results, even as the company demonstrated solid financial performance. CEO Lisa Su addressed investor concerns during an appearance on CNBC, responding to recent statements from Elon Musk regarding SpaceX’s chip procurement strategy. Musk had indicated on a company earnings call that SpaceX would prioritize Nvidia artificial intelligence chips, citing superior architecture. Su responded diplomatically, emphasizing AMD’s longstanding relationship with SpaceX and expressing confidence in continued partnership.
AMD’s financial results showed substantial growth across key metrics. The company reported revenue of $11.54 billion for the second quarter, surpassing analyst expectations of $11.28 billion. Data center operations, the primary driver of growth, generated $6.7 billion in sales, representing a 107% increase on an annual basis. The growth stemmed from central processing unit and graphics processing unit sales. Total company revenue climbed 50% compared to the prior year period.
During earnings discussions, Su outlined aggressive growth expectations for the remainder of the year and beyond. The company anticipates server revenue will expand 80% year-over-year in the second half of 2026, followed by growth exceeding 70% throughout 2027. Su indicated customers are providing enhanced visibility into future demand, allowing the company to make strategic supply chain investments. The executive emphasized AMD’s strengthened position to meet rising computational requirements across its customer base.
Despite the positive operational metrics, market sentiment proved negative. AMD shares closed 7% lower on the trading day, while rival Nvidia gained 3.4%. Analysts attributed the selloff to elevated investor expectations that the earnings results failed to exceed. A Deutsche Bank assessment noted that while second-quarter performance came in marginally ahead of consensus estimates, it fell short of more bullish projections circulating in the market. AMD stock has gained 132% so far this year amid broader enthusiasm for artificial intelligence-related semiconductor investments.
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