AMD Stock Slips Despite Strong Earnings as AI Chip Restrictions Weigh on Sentiment
Advanced Micro Devices delivered better-than-expected Q2 sales and upbeat guidance, yet shares fell 7% as an $800 million charge from US-China AI chip restrictions overshadowed results. The semiconductor firm's gaming segment outperformed while data center margins took a hit.
Bank of America and Wedbush analysts note potential upside from Chinese market recovery in H2, contingent on stable trade relations. AMD's MI355X AI chip ramp and projected double-digit growth failed to offset valuation concerns after the stock's 80% pre-earnings rally.