AMD’s stock dropped 5% on Wednesday despite surpassing earnings expectations, as investor enthusiasm for the Nvidia competitor waned.
The decline occurred even though AMD reported a 50% increase in revenue to $11.54 billion in Q2, exceeding analysts’ forecast of $11.28 billion and highlighting its strong position in the AI chip market.
Data center sales were a major driver of growth, rising 107% year-over-year to $6.7 billion, driven by CPU and GPU sales.
However, while second-quarter earnings were slightly above consensus, they fell short of more optimistic projections, according to Deutsche Bank analysts in a Wednesday note.
Source (CNBC)
