Advanced Micro Devices, Inc (AMD) stock price has fallen nearly 8% in the after-market hours. AMD saw a steep rally on Tuesday, August 4, 2026, after reporting a stellar performance in the second quarter of this year. Let’s discuss why AMD is down despite record revenue.
Why Is AMD Stock Price Down Despite Record Revenue?
AMD reported quarterly revenue of $11.54 billion, an increase of 50% year-on-year. The figure is also higher than the $11.31 billion estimates that analysts predicted. Earnings per share (EPS) came in at $1.66, a 246% increase year-on-year, higher than the expected $1.61. Non-GAAP gross margins, however, landed at 54%, lower than the expected 56%. Nonetheless, AMD had one of its best quarters in history. This begs the question, why did the stock slide in the after-market hours?
AMD’s stock price dip could be due to investors expecting even higher revenue and a more dramatic outlook from tis Helios platform. Futurum Group CEO Daniel Newman also highlights this in a recent X post.
$AMD earnings were good. Market wanted a blowout guide driven by Helios. That is not how AMD operates, even if it has line of sight. Conservative be thy name.
— Daniel Newman (@danielnewmanUV) August 4, 2026
Also Read: Wall Street Reacts to AMD Earnings Report After Sky-High AI Expectations
Patrick Moorhead, founder and chief analyst at Moor Insights & Strategy, also gave his two cents on an X post, stating at AMD was not going to impress the after-hours crowd. Moorhead believes that the after-hours players were most likely anticipating double-digit gains. Moorhead highlighted that AMD’s data center business doubled in Q2 despite Helios not starting shipping. The CEO noted that Helios will only just start shipping and that volumes could ramp up by the fourth quarter of this year.
AMD stock price will likely recover over the coming days. Wall Street analysts are still very bullish on the company, with many expecting the stock to breach the $600 mark eventually. AMD will most probably continue on its current tangent, delivering record earnings in the next two quarters of 2026.
