Movement Alert|Advanced Micro Devices Falls 7.83% in Pre-Market Trading, Q3 Guidance Fails to Meet Aggressive Investor Expectations Despite Record Q2 Beat

Market Focus08-05 16:02

On August 5, Advanced Micro Devices fell 7.83% in pre-market trading, trading at $478.07/share, with turnover of $78.88 million. The decline follows the company's Q2 earnings release after the prior session's close, where results broadly exceeded expectations but forward guidance disappointed aggressive investors.

AMD reported Q2 revenue of $11.536 billion, up 50% year-over-year and above the $11.284 billion consensus estimate, marking a record quarter. Adjusted EPS came in at $1.66, beating the $1.61 estimate by 2.5%, representing a 246% year-over-year increase. Data center segment revenue reached $6.7 billion, more than doubling. However, the Q3 revenue guidance midpoint of $13 billion, while above the $12.5 billion analyst consensus, fell short of expectations from investors who had priced in faster AI-driven acceleration. The sell-off was amplified by profit-taking after AMD had surged over 6% during regular trading on news of warrant agreements with Meta and OpenAI for up to 6GW of GPU deployment. Multiple banks raised price targets post-earnings, with JPMorgan lifting to $550 and Bernstein to $650.

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