AMD's revenue climbs 50% and data center sales doubled, but the stock is down

Skip NavigationMarketsPre-MarketsU.S. MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePolitics & PolicyWhite HousePolicyDefenseCongressExpanding OpportunityVideoLatest VideoFull EpisodesLivestreamLive AudioLive TV ScheduleCNBC PodcastsCEO InterviewsCNBC DocumentariesDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() TechAMD's revenue climbs 50% and data center sales doubled, but the stock is downPublished Tue, Aug 4 20264:31 PM EDTUpdated 6 Hours AgoKif Leswing@kifleswingWATCH LIVEKey PointsAdvanced Micro Devices reported second-quarter earnings on Tuesday.The chipmaker beat expectations on the top and bottom lines and provided in-line guidance for the current quarter. AMD makes both data center CPUs and GPUs. Both kinds of AI chips are driving the company's growth and the unit's sales doubled on a year-over-year basis. In this articleAMDFollow your favorite stocksCREATE FREE ACCOUNTwatch nowVIDEO0:5000:50AMD shares sink more than 10% despite earnings beatClosing Bell: OvertimeAdvanced Micro Devices reported second-quarter earnings on Tuesday that beat expectations, but the stock slumped in extended trading after rising during regular trading hours. Here's how the chipmaker did versus LSEG consensus estimates for the quarter ended June 27: EPS: $1.66, adjusted, versus $1.62 expectedRevenue: $11.54 billion versus $11.28 billion expectedOverall, AMD revenue climbed 50% from $7.69 billion a year ago, a sign of the company's central position in the market for artificial intelligence chips. AMD's Data Center unit is what is driving the company's growth. Data Center sales were $6.7 billion, up 107% on an annual basis, which the company attributed to central processing unit and graphics processing unit sales.The chipmaker's stock has nearly tripled over the past year, both on optimism that its AI chips, branded Instinct, will take a meaningful amount of a growing market from Nvidia, as well as the resurgence of the CPU — which AMD sells under the brand name Epyc — which AI experts now say is an essential component for running agents. AMD said it expects about $13 billion in revenue for the current quarter, plus or minus $300 million, versus LSEG expectations of $12.52 billion. Some analysts h