AMD Shares Fall 6% After Musk Picks Nvidia
Advanced Micro Devices (AMD) shares dropped more than 6% in early trading on Wednesday following Elon Musk’s announcement that SpaceX will build exclusively on Nvidia’s Blackwell artificial‑intelligence server architecture, stating it is the “best architecture.” Musk’s comment reversed earlier suggestions that SpaceX and Tesla might use chips from both AMD and Nvidia, and the news eclipsed AMD’s strong quarterly performance.
In the second quarter ended June 27, AMD posted revenue of $11.54 billion, slightly above Wall Street expectations of $11.25 billion. Data‑center revenue reached an all‑time high of $6.7 billion, representing 58% of total sales, up from 42% a year earlier. The client and gaming segment generated $3.84 billion, a 6.1% year‑over‑year increase. Adjusted earnings were $1.66 per share, beating analysts’ consensus of $1.60.
For the current quarter, AMD guided revenue of approximately $13 billion, give or take $300 million, implying roughly 41% year‑on‑year growth and a 13% sequential rise. The guidance exceeds analysts’ estimate of $12.51 billion. The company also projected server‑revenue growth of more than 70% in the next fiscal year.
CEO Lisa Su said the firm enters the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale, and the Helios platform begins ramp‑up, noting that AI is driving a significant expansion in compute demand across all markets.
AMD highlighted major hyperscaler commitments announced at a July investor event: up to 2 gigawatts with Anthropic, 6 gigawatts with Meta Platforms, and 2.5 gigawatts with Core Scientific. The company also raised its view of the central‑processing‑unit market to exceed $200 billion by 2030 and aims to capture more than 50% of that market.