Shares of Advanced Micro Devices Inc. traded lower following a strong second-quarter earnings report, though several analysts suggest the stock still has room to run. The decline comes after a year of significant growth, with the stock trading up 132% so far in 2026 and more than doubling over the course of the year.
The chip giant has emerged as a key contender to Nvidia in AI processors and has pivoted hard to serving the fastest-growing types of AI workloads. This strategic shift has made the company a major beneficiary of the AI boom, with its Data Center unit driving growth up 107% over last year and now accounting for 58% of total revenue.
However, AMD disappointed investors with its latest sales outlook, indicating that shareholders expected a higher return from the global expansion of AI data centers. While the stock slumped, such a reaction is not uncommon for the company even when reporting positive results.