The stock price of Advanced Micro Devices (AMD) dropped 4% in after-hours trading on Tuesday after reporting mixed second-quarter earnings.
Advanced Micro Devices (AMD) has reported a mixed set of results for the second quarter of the year. AMD shares fell around 4% in after-hours trading on the news that its earnings per share (EPS) missed analysts’ expectations.
Despite beating revenue forecasts, the company posted adjusted EPS of $0.48, narrowly missing Wall Street’s target of $0.49. Revenue reached $7.69 billion, surpassing the $7.42 billion expected by analysts.
Shares in AMD are up 44% in 2025, reflecting solid growth in its PC and data centre chip production. This compares to a 32% rise from fellow chipmaker Nvidia, with AMD outpacing its rival over the same period.
Revenue from AMD’s Data Center segment increased 14% year over year to $3.2 billion. This was, in line with forecasts and driven by solid server CPU sales. Client segment revenue came in at $3.6 billion, supported by rising demand for AMD’s Ryzen Zen 5 desktop chips.
AMD points to strong AI demand
In a news release following the announcement, CEO of AMD, Lisa Su, focused on the positives. She pointed to strong second-quarter revenue growth driven “led by record server and PC processor sales.”
Predicting strong future performance, Su pointed to “robust demand across [AMD’s] computing and AI product portfolio”. She added that the company is “well positioned to deliver significant growth in the second half of the year”.
Supporting this positive outlook, AMD gave a third-quarter revenue forecast of $8.7 billion, plus or minus $300 million. This comes in above the $8.3 billion figure Wall Street analysts had predicted.
New AI chips are on the way
AMD is due to launch its powerful new MI350 series of AI chips towards the end of the year. The company claims the chips will be able to offer up to four times the performance of earlier models.
Meanwhile, the firm also has existing deals with major AI firms like OpenAI and Meta, with seven of the top ten model developers now using AMD Instinct chips. It is aiming to compete directly with Nvidia’s powerful Blackwell-based chips and improve its market position.
The company’s positive revenue guidance suggests ongoing confidence in its broader product portfolio. Recently, AMD’s licensing deal with chip technology firm Arteris made headlines, with Arteris stock rising 37% after revealing AMD will use its IP in future chip designs.
Aside from these mixed Q2 results, the bigger picture is that AMD remains a strong competitor in the semiconductor sector. The world’s second-largest GPU player continues to be well placed at the centre of the AI infrastructure boom.
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