US Stock Market Move | Advanced Micro Devices, Inc. (AMD.US) fell over 7% as its Q3 revenue guidance fell short of expectations.

On Wednesday, Advanced Micro Devices, Inc. (AMD.US) dropped over 7% to $480.71. In terms of news, on August 4, after the market closed, AMD released its Q2 financial report. Although both revenue and profit exceeded expectations, the midpoint of its Q3 revenue guidance was about $13 billion, falling short of some aggressive investors' previous expectations of over $14 billion. Capital expenditures in the second quarter reached $808 million, far exceeding the market estimate of $298.6 million, and representing a significant year-on-year increase, raising concerns in the market about the company's profitability being eroded. The financial report showed that AMD's Q2 revenue grew by 50% year-on-year to $11.536 billion, exceeding the expected $11.3 billion and setting a new historical high. The non-GAAP earnings per share were $1.66, above the market expectation of $1.62. The company's gross margin reached 56%, and net profit totaled $2.76 billion. Company executives are quite optimistic about the medium- to long-term outlook. Chief Financial Officer Jean Hu stated that sales in the data center segment are expected to accelerate further in the second half of 2026, driving overall revenue growth and the continued expansion of CKH HOLDINGS' profitability. Dr. Lisa Su made an explicit prediction that the company's data center revenue will "double again" by 2027, and in the second half of fiscal 2026, server revenue will grow by over 80% year-on-year. Earlier in July, AMD had raised its total global semiconductor market size forecast to $2 trillion by 2028, with the AI accelerator market expected to contribute $1.4 trillion, significantly up from the previous estimate of $500 billion.