AMD’s shares fell nearly 9% in extended trading despite the chipmaker forecasting quarterly revenue above Wall Street expectations, as investors appeared to demand stronger evidence that its heavy investment in artificial intelligence infrastructure can deliver accelerating returns.
“AMD is now in a similar position to Nvidia and the hyperscalers, where investors are looking for evidence that AI infrastructure investments will continue translating into accelerating returns,” said Emarketer analyst Jacob Bourne.
AMD expects third-quarter revenue of about US$13 billion, plus or minus US$300 million, above analysts’ estimate of US$12.52 billion, while adjusted gross margin is expected at about 56%, broadly in line with expectations.
The company also expects data-centre sales to more than double in 2027, with total revenue growth exceeding its previous target of more than 35% and annual earnings surpassing its US$20-per-share goal set at its 2025 analyst day, CEO Lisa Su said.
The outlook followed a strong second quarter, with revenue jumping 50% to US$11.54 billion and adjusted profit reaching US$1.66 per share, both above expectations. Data-centre revenue more than doubled to US$6.72 billion, beating the US$6.48 billion estimate.
AMD has been expanding beyond individual chips into integrated AI systems combining processors, networking equipment and related hardware as it seeks to challenge Nvidia’s dominance.
The company has also secured major AI infrastructure deals, including an agreement to supply Anthropic with tens of billions of dollars worth of AI servers powered by up to 2 gigawatts of MI450 chips from early 2027.
Reuters
