AMD Stock Drops Over 6% Amid Q2 Earnings Miss, Despite Revenue Strength

AMD stock fell 6.08% in pre-market trading after a slight miss on its Q2 earnings per share. The company reported Q2 revenue of $5.49 billion, exceeding estimates, but EPS came in at $0.58, below the forecasted $0.60. Data center revenue grew 14% YoY, and CEO Dr. Lisa Su unveiled details about AMD's next-gen AI chip, the Instinct MI355, slated for a 2026 launch. AMD reaffirmed its full-year outlook, projecting 2025 AI accelerator sales to exceed $4 billion.

Advanced Micro Devices (AMD) stock fell by 6.08% in pre-market trading on Tuesday, July 2, 2025, following the release of its second-quarter (Q2) earnings report. The company reported a slight miss on its earnings per share (EPS), with EPS coming in at $0.58, below the forecasted $0.60. However, the company's revenue of $5.49 billion exceeded estimates by $0.27 billion [1].

AMD's data center revenue grew by 14% year-over-year (YoY), reaching $3.2 billion. CEO Dr. Lisa Su unveiled details about AMD's next-gen AI chip, the Instinct MI355, which is slated for a 2026 launch. Su expressed optimism about the chip's potential, noting that it is competitive with Nvidia's B200 and GB200 chips [3].

Despite the EPS miss, AMD reaffirmed its full-year outlook, projecting 2025 AI accelerator sales to exceed $4 billion. The company expects continued growth in its data center GPU business throughout the second half of the year [3].

AMD's main business segments include Data Center, Client & Gaming, and Embedded. The Data Center segment, which includes CPUs and GPUs, saw strong revenue growth. The Client & Gaming segment, which includes CPUs for laptops and desktops and GPUs for 3D gaming, also saw significant year-over-year (YoY) growth, up 69% to $3.6 billion [2].

AMD is the second-largest maker of graphics processing units (GPUs) for artificial intelligence, trailing Nvidia. However, the company is gaining traction among big AI customers such as Meta and OpenAI, who are looking for alternatives to Nvidia's chips, especially for inference tasks [1].

AMD is also grappling with chip export controls placed on some of its AI chips due to U.S. government concerns about their potential use by adversaries for military purposes. The company expects AI revenue to grow YoY in the current quarter [1].

References:
[1] https://www.cnbc.com/2025/08/05/amd-earnings-report-2q-2025.html
[2] https://www.tradingview.com/news/zacks:a7035000d094b:0-will-amd-stock-climb-on-strong-data-center-revenues-in-q2-earnings/
[3] https://www.benzinga.com/markets/tech/25/08/46879633/lisa-su-says-amds-ai-chip-mi355-taking-on-nvidias-b200-gb200-head-on-as-ai-customers-seek-scalable-gpu-alternatives