AMD falls as investors seek bigger AI payoff

Advanced Micro Devices (AMD-Q -6.65%decrease) shares tumbled on Wednesday ⁠as ​the chipmaker’s revenue forecast failed to impress investors seeking clearer signs that a multibillion-dollar AI spending boom will translate into faster growth.

Shares were last down 6.6 per cent at US$482.53, set to erase close ​to US$59-billion from the company’s market value.

AMD’s ‌stock was also hit by SpaceX’s (SPCX-Q -8.76%decrease) CEO Elon Musk’s decision to build the company’s computing infrastructure exclusively with rival Nvidia’s (NVDA-Q +3.37%increase) chips.

Shares of the AI bellwether gained 3.3 per cent in early trading. AMD’s decline lays bare the ‌elevated expectations ​from the company, which signed ‌deals last month with Anthropic and Core Scientific, to win ​high-profile customers and close the gap on Nvidia ⁠and Intel.

Adv Micro Devices

482.16+268.00 (125.14%)

Year to date

Dec. 30, 2025

214.16

Aug. 5, 2026

482.16

SOURCE: BARCHART

“We suspect expectations had moved higher following ⁠Intel’s results a couple of weeks ago, and the buyside already has ​a fairly bullish outlook,” said Stacy Rasgon, analyst at Bernstein.

The Santa Clara, California-based firm forecast third-quarter revenue of about US$13-billion, plus or minus US$300-million, above analysts’ estimates of US$12.52-billion, according to data compiled by LSEG.

Analysts at TD Cowen said AMD ⁠faced a “very high bar” after recent AI-related customer wins and a sharp rally in its shares, even though its results and forecast were “objectively good”.

J.P.Morgan analysts said supply constraints remain a risk, with projects concentrated on TSMC’s N3 process and CoWoS chip-packaging ⁠technology likely to face tightness through ​2027.

Chief Executive Lisa Su said AMD expects data-center revenue to more than ⁠double by 2027 and projected revenue growth above its previously outlined target of more ‌than 35 per cent. AMD’s data-center revenue more than doubled to US$6.72-billion, topping expectations.

AMD’s stock ​has more than doubled this year on expectations that the company will emerge as the leading alternative to Nvidia in AI chips, raising the ante for quarterly results.