AMD Falls Despite 107% Data Center Growth as 17% Margin Gain Fails to Wow
Updated
Updated · Yahoo Finance · Aug 8
AMD Falls Despite 107% Data Center Growth as 17% Margin Gain Fails to Wow
3 articles · Updated · Yahoo Finance · Aug 8
Summary
AMD shares slipped after second-quarter results even as data center revenue jumped 107% year over year, signaling investors wanted more than strong headline growth.
A weak China-hit quarter last year made comparisons easier, but AMD still posted 16% sequential data center growth and lifted operating margin to 17% from a 2% loss.
Those gains suggest the business is improving, yet the market reaction points to valuation pressure after AMD stock had already more than doubled this year.
Nvidia remains the benchmark: AMD's annual data center growth topped Nvidia's 92%, but Nvidia's latest quarter showed faster 21% sequential growth, underscoring that AMD has not clearly pulled ahead.