AMD Reports $7.7B Q2 Revenue, Shares Fall on AI Data Center Miss

Advanced Micro Devices (AMD) reported strong second-quarter earnings for 2025 with revenue of $7.69 billion, surpassing expectations, and a 14% increase in data center sales to $3.2 billion. Despite this growth, especially in AI-related segments, the stock fell nearly 5% due to slightly lower than expected earnings per share and concerns over U.S. export restrictions on key AI chips to China, which limited AMD's AI chip sales. The AI chip market remains competitive, with AMD lagging behind Nvidia, whose data center revenue surged 73% to over $39 billion. Investor confidence was mixed, with some, like Cathie Wood's ARK Investment, increasing their AMD holdings, signaling belief in future growth. Meanwhile, other semiconductor companies like Super Micro Computer also faced declines due to weak data center results and challenges competing against larger rivals. Additionally, the broader AI crypto token market saw declines ahead of AMD's earnings, reflecting cautious sentiment around AI investments.