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AMD Stock Tumbles 9% as AI GPU Sales Miss Expectations
6 Aug
Summary
- AMD's Q2 earnings matched Wall Street estimates
- But AI GPU sales growth slowed, disappointing investors
- AMD forecasts strong Q3 sales, up 28% year-over-year
On August 6, 2025, semiconductor company AMD (NASDAQ: AMD) saw its stock price drop by 9.2% in morning trading following the release of its Q2 2025 earnings report. While AMD's financial results for the quarter were largely in line with Wall Street's expectations, investors were concerned by weaker-than-anticipated growth in the company's artificial intelligence (AI) graphics processing units (GPUs).
AMD reported non-GAAP earnings per share of $0.48 on revenue of $7.69 billion for Q2 2025, matching analyst estimates. However, the revenue composition showed that sales of AMD's central processing units (CPUs) for PCs and servers, as well as its gaming GPUs, accounted for a larger share than the market had expected. This overshadowed the company's AI GPU business, which had been a key driver of AMD's valuation gains in recent months.
Despite the Q2 disappointment, AMD provided an encouraging outlook for the current quarter. The company is guiding for Q3 2025 revenue to fall between $8.4 billion and $9 billion, significantly ahead of the average analyst estimate of $8.32 billion. Hitting the midpoint of this range would represent year-over-year sales growth of approximately 28%.
While AMD's overall Q2 performance was far from disastrous, the slowdown in AI GPU sales has caused investors to reevaluate the company's growth trajectory. However, the stock's sharp pullback on August 6th may present an opportunity for long-term growth investors to take a closer look at AMD.
