Nvidia Wins Big as AMD Stock Takes a Hit

Advanced Micro Devices (AMD) stock plummeted by 8.6% in overnight trading, despite beating earnings estimates for its second quarter. The company reported a 50% increase in revenue to $11.5 billion, with adjusted earnings rising to $1.66 per share.

The surge in capital expenditures, however, overshadowed the strong quarterly results. AMD's capital expenditure jumped to $808 million, more than double the $282 million spent in the same period last year and exceeding the $389 million spent in the previous quarter.

SpaceX CEO Elon Musk announced that his company will switch from using AMD chips to Nvidia for its AI computing infrastructure, citing the 'Blackwell architecture' as the best choice. This decision comes after Musk previously stated that both Tesla and SpaceX would likely continue to buy both Nvidia and AMD chips.

Retail sentiment on Stocktwits shifted to 'extremely bullish' from 'bullish,' with many traders expecting the stock to bounce back on Wednesday, citing the strong fundamentals of AMD's business as a reason for optimism.