Advanced Micro Devices (AMD) shares fell 9% on Wednesday after the company reported that its data center revenue grew just 14% year-over-year in the second quarter, well below investor expectations. Despite posting strong overall earnings and record sales in several segments, the slowdown in data center growth raised concerns about its positioning in the competitive AI market.
In the report, AMD said its data center revenue reached $3.2 billion, up from $2.8 billion a year earlier. However, the segment posted an operating loss of $155 million, compared to an income of $932 million in the same period of 2024.
Speaking to CNBC on Wednesday, AMD CEO Lisa Su defended the segment's outlook, saying that "data center business is doing extremely well." "We see actually an inflection point in that revenue as we go into the third quarter," she added. AMD's stock dropped 9.02% to $158.59 apiece at 10:47 am ET.
