AMD sinks despite solid sales and revenue guidance

Advanced Micro Devices, the top-performing US semiconductor stock in 2025, is giving back some of its big year-to-date gains after its second-quarter earnings report.

The chip company delivered a modest bottom-line miss and a big beat on sales:

• Adjusted diluted earnings per share came in at $0.48 (compared to estimates for $0.49).

• Revenues were $7.69 billion (estimated $7.43 billion).

While the sales numbers jump out as impressive, under the hood they may be a little less so: AMD’s data center business actually came in a bit shy of estimates, and the beat was wholly driven by strength in its gaming division.

Guidance for Q3 was also impressive on the top line:

• Revenue is forecast between $8.4 billion and $9 billion (compared to analysts’ estimate of $8.37 billion).

• Gross margin is expected at 54% (estimated 54.1%).

That guidance does not include any revenue from sales of its MI308 chips to China, the company said, as its “license applications are currently under review by the US government.”

AMD led all members of the VanEck Semiconductor ETF heading into this report, up about 45% year to date. During the second quarter, management approved a fresh buyback authorization and, more importantly, unveiled a new line of chips that boost its prospects of eating into Nvidia’s market share in the AI GPU market.

AMD, like Nvidia, suffered from forgone sales to China this quarter after the announcement of additional export curbs in April. Those measures were reversed in mid-July, further juicing the chipmaker’s rally.