Shares of AMD fell sharply after the company reported record quarterly revenue and a third quarter outlook that topped analysts expectations but failed to lift the share price. Trading moved within a session range of $470.76 to $502.00, with shares near $484, according to Robinhood.
The company said second quarter revenue rose 50 percent year over year to $11.5 billion, and that its Data Center business doubled to $6.7 billion. Management delivered guidance calling for roughly $13 billion in the next quarter, a figure widely noted as stronger than Wall Street forecasts.
Market reactions were mixed, and some coverage pointed to rising costs tied to the Data Center expansion as a factor in the selloff. Despite the upbeat outlook, the stock’s intraday decline exceeded six percent and extended losses reported earlier in the session.
Reactions And Market Impact
Analysts and investors parsed the results and outlook. Morgan Stanley analyst Joseph Moore raised his price target to $465 from $410 but kept an Equal Weight rating on the shares, signaling measured confidence on valuation.
Options activity showed elevated interest, with Tuesday’s total option volume reaching 83.8 million contracts and net open interest rising by about 9.10 million calls and 6.98 million puts, as reported in market summaries. Trading volume of roughly 30.04 million compared with a ten day average near 31.6 million.
The stock trades well off its 52 week low of $149.22 while remaining below a 52 week high of $584.73. Robinhood data lists a price to earnings ratio of 159.06 and a market capitalization in the high hundreds of billions, reflecting investor expectations embedded in current valuation.
Company leadership listed on the corporate profile includes CEO Lisa Su, CFO Jean Hu and EVP Forrest Norrod among senior executives. Broader coverage noted competitive dynamics, including reports that SpaceX chose Nvidia for AI infrastructure, and commentary about why being the sector’s second place competitor poses strategic and market challenges.
