AMD Shares Slide Despite Earnings Beat as Capex Surges Triple Expectations

Key Facts

Amid intense scrutiny of AI-driven growth, AMD reported quarterly results that beat top-line estimates but triggered a sharp sell-off due to surging operational costs. According to reports, the company posted revenue of $11.54 billion, surpassing the $11.28 billion expected by analysts, while adjusted earnings per share reached $1.66. Despite these beats, the stock crashed in after-hours trading as investors reacted to a significant miss in cash flow metrics.

The market reaction highlights growing concerns over the high cost of AI infrastructure, as AMD's capital expenditures surged to $808 million—nearly triple what analysts had anticipated. This spending spike caused free cash flow to miss forecasts by 20%, overshadowing a 107% year-over-year jump in data center revenue which hit $6.72 billion. Furthermore, while the Q3 revenue guidance of $13 billion met consensus, it failed to satisfy the most optimistic projections on Wall Street.

Investors should closely monitor price stabilization levels following this post-earnings volatility to gauge long-term sentiment. With the Federal Reserve holding interest rates at 3.75% as of July 29, 2026, the focus remains on whether AMD can maintain its aggressive data center expansion without further eroding its cash position through excessive capital outlays.