AMD Stock Tumbles 5% After Solid Double Beat. Blame Bad Timing and Sour Sentiment.

Tech company grew its revenue by 36% from last year but it wasn’t enough to hold the line. Bears are now in charge.

💾 Strong Numbers, Weak Reaction

• AMD stock AMD fell nearly 5% in pre-market trading Wednesday despite delivering better-than-expected quarterly results.
• The chipmaker reported adjusted earnings of $1.20 per share, topping estimates of $1.16, and revenue of $9.25 billion, also ahead of the $8.74 billion modeled by Wall Street.
• That’s a 36% year-over-year jump in revenue. Net income climbed to $1.24 billion from $771 million a year earlier — an impressive turn up by any measure.

📊 Guidance Beats Too

• AMD expects fourth-quarter revenue of about $9.6 billion, implying 25% growth and beating Wall Street’s projection of $9.15 billion.
• Margins, however, came in merely in line with expectations, and that was apparently sufficient to dampen the mood.
• Analysts say the company’s upbeat outlook wasn’t enough to overcome broader unease in the market, where investors have started pulling back from AI names after months of runaway gains.

📉 AI Euphoria Meets Fatigue

• AMD’s strong performance comes amid a wave of AI-related volatility across the tech sector.
• The S&P 500 and Nasdaq both slid Tuesday as investors questioned whether massive capital spending on artificial intelligence by companies like Nvidia, Meta, and Microsoft can translate to sustainable profits.
• Even as AMD continues to slowly close the gap with Nvidia in AI chip technology, sentiment toward the entire space has cooled.