AMD falls as investors seek bigger AI payoff

Reuters

Updated Wed, August 5, 2026 astatine 4:44 AM CDT 1 min read

Aug 5 (Reuters) - Advanced Micro Devices shares declined earlier the doorbell connected Wednesday arsenic the chipmaker's stronger-than-expected gross forecast ‌fell abbreviated of lofty expectations and investors sought clearer ‌signs that a multibillion-dollar AI spending roar volition construe into faster growth.

The shares were ​set to hitch retired much than $61 cardinal from AMD's marketplace value.

The determination underscores elevated expectations facing AMD arsenic it aims to situation Nvidia's dominance amid intensifying contention with Intel racing to ‌regain exertion enactment aft ⁠strong results.

"We fishy expectations had moved higher pursuing Intel's results a mates of weeks ago, and the ⁠buyside already has a reasonably bullish outlook," said Stacy Rasgon, expert astatine Bernstein.

Analysts astatine TD Cowen called AMD's results and forecast "objectively good" but ​said the ​stock was facing a "very precocious ​bar" pursuing caller AI-related lawsuit ‌announcements and the crisp rally successful the shares.

The Santa Clara, California-based institution forecast third-quarter gross of astir $13 billion, positive oregon minus $300 million, supra analysts' estimates of $12.52 billion, according to information compiled by LSEG.

Investors person much than doubled AMD's banal this twelvemonth connected expectations that ‌the institution volition look arsenic the ​leading alternate to Nvidia successful AI chips, ​raising the barroom for ​quarterly results.