On August 5, Advanced Micro Devices declined 8.74% overnight, trading at $472.88/share, with turnover of $356,200. The sell-off was triggered by the company's Q3 revenue guidance falling short of aggressive investor expectations despite delivering a strong Q2 earnings beat.

AMD reported Q2 revenue of $11.536 billion, up 50% year-over-year and above the $11.284 billion consensus estimate. Adjusted EPS came in at $1.66, beating the $1.61 estimate by 2.47%, representing a 246% year-over-year increase. Data center revenue reached $6.7 billion, more than doubling year-over-year. However, Q3 revenue guidance of $127-133 billion (midpoint $130 billion), while above the $125.1 billion analyst consensus, did not satisfy some investors who had expected AI demand to drive further acceleration.

Notably, AMD had risen over 6% during regular trading on news of warrant agreements with Meta and OpenAI involving up to 6GW of Instinct GPU deployments. The post-earnings reversal reflected profit-taking as the elevated Q3 guidance bar was not sufficiently exceeded. Management stated the company remains in the early stages of a multi-year AI adoption cycle and expects data center revenue to more than double in 2027.

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