AMD shares fall 7% after its third quarter outlook disappoints, even as second quarter revenue grows 50%

Shares of the US semiconductor company AMD fell about 7% in after hours trading on Tuesday 4 August 2026 after the chipmaker's third quarter sales outlook failed to meet elevated investor expectations. AMD forecast third quarter revenue of about $13 billion, plus or minus $300 million, below analysts' estimates.

The second quarter results themselves came in ahead of expectations. Revenue climbed 50% year on year to $11.5 billion, against expectations of about $11.3 billion, and adjusted earnings reached $1.66 per share versus a market estimate of $1.62. Data center revenue more than doubled to $6.7 billion, while personal computer and gaming sales rose 6% to $3.8 billion.

AMD had closed the regular session that day 7% higher at $518.58, and the stock has more than doubled since the start of 2026. The company estimates the market for AI data center processors could reach $1.4 trillion by 2030. Rising investment in AI data centers has contributed to shortages and higher prices for memory chips, putting pressure on makers of personal computers, smartphones and other electronic devices.