On August 5, Advanced Micro Devices declined 6.82% in regular trading, trading at $494.135/share, with turnover of $41.0 billion. The sell-off was triggered by the company's Q3 revenue guidance falling short of the most aggressive investor expectations for AI demand acceleration.

AMD reported Q2 revenue of $11.54 billion, up 50% year-over-year and exceeding the consensus estimate of $11.3 billion, marking a record high. Adjusted EPS came in at $1.66, beating the $1.62 estimate by 2.5%. Data center revenue reached $6.7 billion, more than doubling year-over-year. However, the Q3 revenue guidance midpoint of $13.0 billion, while above the $12.5 billion analyst consensus, did not meet expectations from bullish investors who had priced in further AI-driven acceleration.

Compounding the pressure, AMD had surged over 6% in the prior session on news of a GPU deployment warrant agreement with Meta and OpenAI for up to 6GW capacity, raising the bar for earnings to sustain momentum. Multiple Wall Street firms adjusted price targets post-earnings, with Truist raising to $594, JPMorgan to $550, and Bernstein to $650, while Morgan Stanley maintained an Equalweight rating with a $465 target.

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