AMD after-hours plummets 8.80%... Even surprise earnings couldn't stop the ‘Nvidia Shock’

▲ AMD/AI generated image ©

AMD announced earnings and revenue guidance that surpassed Wall Street's expectations, but its stock plummeted 8.80% in after-hours trading. Market anxiety over artificial intelligence (AI) investments and Elon Musk's statement that he 'only uses Nvidia chips' were cited as factors that shook investor sentiment.

According to crypto-specialized media outlet Finbold on August 5 (local time), AMD's stock price closed at $518.58, up 7% in regular trading on the 4th, but then fell to $472.94 in after-hours trading. Despite the company's revenue and earnings per share (EPS) both exceeding market expectations, the stock gave back its gains and turned sharply lower.

AMD's quarterly revenue was $11.54 billion, surpassing Wall Street's forecast of $11.28 billion. Earnings per share also came in at $1.66, higher than the estimated $1.62. The revenue outlook for this quarter was $13 billion, exceeding the market's expectation of $12.52 billion, but falling short of the most optimistic forecast of $14 billion. The company anticipates its data center revenue to double by 2027.

Capital expenditure (CapEx) surged from $282 million to $808 million in one year. However, given that the absolute scale is not large, it is difficult to explain the stock's sharp decline solely based on this. It was suggested that Musk's statement during the SpaceX earnings announcement on the same day, saying, 'We decided to only use Nvidia chips because they are the best,' likely influenced individual investor sentiment. The direct impact on AMD's performance from SpaceX's relatively small AI business is limited.

Amid growing anxiety over AI spending recently, the market's expectations being excessively higher than Wall Street's forecasts was also cited as a reason for the sell-off. This implies that results merely meeting expectations were not enough to sustain the stock's upward trend. However, as of the regular trading close, AMD's stock has risen 132% this year, maintaining its position among the top-performing major large-cap stocks in 2026. Even reflecting the after-hours plunge, the stock merely returned to its late July level.

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