Surprisingly, AMD also says it expected “strong” double-digit growth in its embedded business, which has traditionally represented the smallest slice of AMD’s revenue pie. In Q2, embedded revenue was $977 million, which is up 19% year-over-year, which AMD attributes to increased demand (perhaps in the realm of physical AI). That means gaming is the smallest part of AMD's revenue pie for the moment, and that position seems likely to continue until we see some kind of new discrete GPU or console hardware from the division that might spur upgrades.
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Jake Roach is the Senior CPU Analyst at Tom\u2019s Hardware, writing reviews, news, and features about the latest consumer and workstation processors. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-25/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Jake Roach Social Links Navigation Senior Analyst, CPUs Jake Roach is the Senior CPU Analyst at Tom’s Hardware, writing reviews, news, and features about the latest consumer and workstation processors.
Gururu I can't help but feel that AMD, beginning with CES 2026, has been loud and clear about how much they were going to push their gaming products, so no surprises here. Reply
TechieTwo AMD surpassed every projected metric that Wall Street uses and their stock dropped 7%. If you can't figure this out is market manipulation for HUGE profit. Between day traders and automated computer trading by large entities they have been able to manipulate the market for years if not decades. Reply
JamesJones44 TechieTwo said: AMD surpassed every projected metric that Wall Street uses and their stock dropped 7%. If you can't figure this out is market manipulation for HUGE profit. I know it's hard to understand and believe, but stocks do not trade on their raw earnings, they trade on expectations. When those expectations are not met (by earnings or something else), the stocks fall. When those expectation are exceeded stocks go up (by earnings or something else). When those expectations are just met, other factors come into play (more on that towards the end) The other important thing to understand, is the minute the current quarter earnings come out, even if they meet or fail to meet expectations, the stock still might have a different reaction. This is because most companies when they release earnings give what is called "forward guidance". Just like expectations for earnings, expectations for forward guidance is also in play. Now as to why AMD is down and the other factors. AMD is trading at an insane premium to the market, 124x earnings vs 30x earning for the S&P 500, even Nvidia's price to earnings is not that high (44x). When that happens for the company to grow into its premium it must beat expectations by a mile and tell you next quarter is going to beat by a mile. Neither of those things happened today, thus expectations were not met and the stock is down, not "market manipulation" Reply
Key considerations
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- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/amd-doubles-data-center-revenue-year-over-year-but-gaming-revenue-plunged-by-31-percent-ceo-lisa-su-says-prices-have-weighed-on-consumer-demand-but-is-optimistic-about-client-market#main
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Informational only. No financial advice. Do your own research.