Advanced Micro Devices reported record revenue and earnings but missed elevated investor expectations, triggering a premarket sell-off.
Advanced Micro Devices (AMD) fell 8% in premarket trading after reporting second-quarter earnings that surpassed Wall Street estimates but fell short of lofty investor expectations. Revenue rose 50% year-over-year to $11.54 billion, while adjusted earnings per share hit $1.66, beating forecasts of $1.62.
Data center revenue more than doubled, now accounting for 58% of total revenue, up from 42% a year ago. Despite the strong performance, capital expenditures surged to $808 million, up from $282 million in the same period last year. AMD guided third-quarter revenue to approximately $13 billion, plus or minus $300 million.
Investors had anticipated a blowout quarter, with AMD trading at nearly 60 times earnings. The company’s results, while record-setting, failed to reset expectations, leading to the sell-off.