AMD Stock Falls Despite Strong Earnings Amid High Market Expectations
Advanced Micro Devices (AMD) CEO Lisa Su downplayed Elon Musk's comments that SpaceX would exclusively use Nvidia AI chips, saying 'I have tremendous respect for Elon and everything that he has done, and so we look forward to continuing to partner over the longer term.'
Su made the remarks after AMD posted strong second-quarter earnings, with revenue climbing 50% to $11.54 billion, ahead of analyst expectations.
Despite this, AMD's stock closed 7% lower on Wednesday, while Nvidia shares rose 3.4%. Su attributed the decline in part to high market expectations and said that customers were seeking more compute power, which AMD is planning for through investments across its supply chain.
'As a result, we're making investments across the supply chain,' she told CNBC. 'We're working with our partners. We're making backend investments. We're making the investments in the entire ecosystem.'