AMD beat analysts' forecasts - but the stock is plunging in after-hours trading
Chip giant AMD reported its second-quarter results, beating analysts' expectations for both earnings and revenue. Despite the strong performance, the company's stock fell 8% in after-hours trading.
Chip giant AMD published its reports for the second quarter this evening after the close of trading on Wall Street, beating analysts' forecasts. However, the stock is plunging by 8% in after-hours trading.
AMD recorded a net profit per share of 1.66 dollars, above the average of analysts' forecasts which stood at 1.62 dollars per share. Revenues totaled 11.54 billion dollars, above the expectation of 11.28 billion dollars. Overall, AMD's revenues jumped by 50% compared to the same period last year, a fact that indicates the company's central status in the artificial intelligence chip market.
The main growth engine of AMD is the data centers division, whose sales stood at 6.7 billion dollars for the quarter – a jump of 107% compared to the same period last year. The company attributed the jump to sales of central processing units (CPU) and graphics processing units (GPU).
AMD now expects that revenues in the current quarter will total 13 billion dollars, plus or minus 300 million dollars - analysts expected the company to publish a forecast of 12.52 billion dollars. AMD's stock has almost tripled in value over the last year, due to assessments that its AI chips (Instinct) will capture a significant share of the market at the expense of Nvidia, and against the backdrop of the rise in demand for central processors (CPU) – which AMD sells under the Epyc brand – which are considered essential for operating artificial intelligence agents.
