Aug 6 – AMD (NASDAQ:AMD) stock slipped 5% in pre-market trading on Wednesday despite beating Q2 revenue estimates, as investors focused on a slowdown in data center growth.
For the quarter ending June 28, Advanced Micro Devices (NASDAQ:AMD) reported adjusted EPS of $0.48, matching expectations. Revenue jumped 32% year over year to $7.68 billion, topping forecasts of $7.43 billion.
But the data center story didn’t shine. Revenue from that segment dropped 12% sequentially to $3.24 billion, even though it still grew 14% year over year. The market clearly wanted more AI-driven momentum, but instead saw strength in CPU sales.
CEO Lisa Su highlighted strong demand for AMD’s EPYC and Ryzen processors and flagged that MI350 accelerators are ramping for the second half. AMD guided Q3 revenue between $8.4 billion and $9 billion, a midpoint above Wall Street’s $8.37 billion consensus.
Still, investors worry. The rally of nearly 50% year to date may have baked in too much AI optimism. With the U.S. government reviewing MI308 export licenses to China, AMD’s AI ambitions may face near-term hurdles.
Right now, Wall Street wants to see more AI firepower, fast.
This article first appeared on GuruFocus.
