AMD Jumps 8.7% as Palantir’s 93% Revenue Surge Fuels AI Demand Bets
Updated
Updated · The Motley Fool · Aug 4
AMD Jumps 8.7% as Palantir’s 93% Revenue Surge Fuels AI Demand Bets
3 articles · Updated · The Motley Fool · Aug 4
Summary
AMD shares rose as much as 8.7% Tuesday and were still up 8.6% by 1:38 p.m. ET, hours before the chipmaker’s second-quarter report.
Palantir’s results drove the move: Q2 revenue jumped 93% to $1.94 billion and adjusted EPS climbed 156% to $0.41, both well above Wall Street forecasts.
Palantir’s U.S. commercial revenue surged 149% to $764 million and its U.S. government business rose 90% to $809 million, reinforcing signs of broad AI spending.
AMD has guided for Q2 revenue growth of 46% to $11.2 billion, and investors are betting that strong enterprise AI demand will support that outlook.
The rally also reflects expectations AMD can keep taking AI GPU share from Nvidia, which holds more than 80% of the market while AMD has about 6%.
As Palantir proves AI software is highly profitable, can AMD's new Helios systems truly dethrone Nvidia in the data-center hardware race?
With AI chip demand skyrocketing through 2026, will severe advanced packaging bottlenecks ultimately derail AMD's aggressive data-center expansion plans?
Beyond the massive stock surges, how long can enterprise AI spending sustain this explosive hardware growth before ROI realities set in?