AMD stock got an unexpected knock down blow from SpaceX during dueling earnings call from both companies.

đź“Š AMD beats, traders hit sell

  • AMD shares slumped roughly 10% after the chipmaker posted solid second-quarter results.
  • Revenue and profit both cleared expectations, yet the guidance offered limited upside for a stock carrying enormous AI hopes. Then Elon Musk wandered into the earnings calls from another earnings call.
  • Revenue jumped 50% year over year to a record $11.5 billion, beating Wall Street’s $11.3 billion forecast. Adjusted earnings reached $1.66 per share, up from $0.48 last year and slightly ahead of the $1.62 analysts expected.

🖥️ Data-center sales double

  • Data-center revenue surged 107% to $6.7 billion, topping projections of $6.3 billion and accounting for 58% of total sales.
  • The segment delivered a 31% operating margin, meaning AMD retained 31 cents of operating profit from each dollar generated there.
  • Companywide adjusted operating income reached $3.1 billion, producing a 27% margin and narrowly beating consensus. The figures showed AMD successfully converting AI demand into profit.
  • AMD forecast third-quarter revenue of roughly $13 billion and adjusted earnings of $1.93 per share at the midpoint, both slightly ahead of expectations. The outlook was upbeat, but “slightly ahead” can sound remarkably disappointing after a stock has already priced in rapid AI acceleration.

🚀 Musk chooses Nvidia

  • The selloff deepened during SpaceX’s simultaneous earnings call when Elon Musk said the rocket company would build its AI infrastructure exclusively around Nvidia.
  • He called Nvidia’s Blackwell platform “the best architecture.” Somewhere, AMD’s investor-relations team probably checked the other webcast’s mute button.
  • The decision represented a surprise reversal. As recently as May, Musk said Tesla and SpaceX would probably continue purchasing chips from both Nvidia and AMD.
  • Losing SpaceX alone doesn’t erase AMD’s booming data-center business, particularly with Meta, Microsoft, OpenAI, Oracle and Anthropic among its customers.