Advanced Micro Devices’ (AMD) stock was down 5% in after-hours trading on Aug. 4 despite the company reporting financial results that beat Wall Street forecasts.
The chipmaker reported earnings per share (EPS) of $1.66, which topped the consensus expectation among analysts that called for a profit of $1.62. Revenue in the latest quarter reached a record $11.54 billion, beating Wall Street forecasts of $11.28 billion. Sales were up 50% from a year earlier.
AMD, as the company is known, also reported that its gross margin reached 56% in what was the year’s second quarter. Additionally, microchip sales for use in artificial intelligence (AI) data centers generated $6.72 billion of revenue, up 107% year-over-year. Sales of chips and processors in AMD’s video game and client division brought in a combined $3.8 billion in sales.
Advanced Micro Devices’ operating income by segment. Source: The Fly
AMD’s Guidance
Management at AMD said they now expect $13 billion in revenue for the current third quarter of 2026, plus or minus $300 million. That’s slightly ahead of the $12.52 billion in Q3 sales that analysts had penciled in for the company.
Prior to these latest financial results, AMD’s stock has nearly tripled over the past 12 months amid signs the company is taking market share from rival chipmaker Nvidia (NVDA), and because of a resurgence in demand for central processing units (CPUs), which is AMD’s most important product and one that AI experts say is an essential part for running models and agents.
Is AMD Stock a Buy?
The stock of Advanced Micro Devices has a consensus Strong Buy rating among 34 Wall Street analysts. That rating is based on 28 Buy and six Hold recommendations issued in the last three months. The average AMD price target of $589.72 implies 11% upside from current levels. These ratings could change after the company’s financial results.
