Why Did AMD Stock Plunge 5.69%? Earnings Miss Q3 Forecast

Generated by AI AgentAinvest Pre-Market Radar
Wednesday, Aug 6, 2025 4:04 am ET1min read
Aime RobotAime Summary

- AMD shares fell 5.69% pre-market after Q3 forecast missed expectations despite $1.6B revenue growth in Q2 2025.

- Earnings showed $0.01 loss vs. $0.03 estimate, with flat profits contrasting strong AI chip demand-driven revenue.

- Analysts downgraded ratings citing profitability risks, exacerbating 4% post-earnings trading decline.

- Year-to-date 40% stock rise contrasts recent volatility, highlighting market uncertainty over AMD's growth trajectory.

On August 6, 2025,

(AMD) experienced a significant drop of 5.69% in pre-market trading, reflecting investor concerns and market reactions to recent financial reports.

AMD's stock has been under pressure following the release of its second-quarter 2025 earnings report. The company reported a loss per share of $0.01, which was better than the estimated loss of $0.03. However, the revenue grew by 4% annually to $1.6 billion, indicating a mixed performance. The earnings report showed that while profits remained flat, revenue exceeded expectations due to strong demand for AI chips.

Investors were disappointed with the company's Q3 forecast, which failed to meet market expectations. Despite the positive revenue outlook, shares of

fell by 4% in extended trading. This decline comes after the stock has risen by 40% this year, highlighting the volatility and investor sentiment surrounding the company's performance.

Analysts have downgraded their ratings for AMD, citing profitability headwinds and concerns over business growth. The company's stock has been trading down by 4% in response to these downgrades, reflecting the market's cautious stance towards AMD's future prospects.

Comments



Add a public comment...
No comments

No comments yet