AMD stock fell 5% on Wednesday despite reporting earnings that beat expectations, with revenue climbing 50% to $11.54 billion in the second quarter, ahead of analyst expectations of $11.28 billion. Data center sales surged 107% year-on-year to $6.7 billion, driven by central processing unit and graphics processing unit sales. However, the stock disappointed investors who have been consistently skittish this year about AI stocks, especially after the shares gained 132% so far this year and trade at a P/E multiple of 170. AMD raised its forecasts for the semiconductor industry, estimating it could be worth $2 trillion per year by 2028, with $1.4 trillion coming from AI accelerators.
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