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AMD Crashes Despite Big Beat, CapEx Almost Triple Expectations
['Tyler Durden']
ZeroHedge News
AMD beat on its top- and bottom-line:Revenue: $11.54B vs $11.28B expectedAdjusted EPS: $1.66 vs $1.62 expectedGood news.
With Data center revenue up 107% year over year to $6.72B, better than the $6.6B expected.
The chipmaker forecast that third-quarter revenue will be $13 billion, plus or minus $300 million ($12.5 billion consensus).
Additionally, operating income for the last quarter was only a little better than forecast and clearly traders were hoping for more.
It appears the market is unwilling to reward hyperbolic AI spending... without some signs of ROIC (which the revenue forecast did not provide relative to the spend).