AMD Stock Rally Under Threat on Q2 Earnings Miss, $64 Support Breaks
AMD's recent climb has been disrupted by a steep post-earnings dip, which has raised concerns about whether its positive momentum can...
Quick overview
- AMD's stock fell over four percent in after-hours trading following a second-quarter earnings report that missed market expectations.
- The company's share price dropped below the key $70 level, raising concerns about the sustainability of its recent rally.
- Despite a record revenue of $7.7 billion, investor confidence has been shaken by rising competition in the chip market and export-related charges.
- Traders are closely monitoring AMD's 20-day simple moving average for signs of potential support or further decline.
Live AMD Chart
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AMD’s recent climb has been disrupted by a steep post-earnings dip, which has raised concerns about whether its positive momentum can continue.
Earnings Miss Sparks Market Reaction
Advanced Micro Devices (NASDAQ: AMD) extended its decline in after‑hours trading on Tuesday, falling more than four percent after already losing 1.4 percent during the regular session. The drop came after the company released its second‑quarter earnings, which fell short of market expectations, pushing the share price below the key $70 level. Rising chip market competition added to the pressure, reinforcing concerns that AMD’s strong run might be losing steam.
AMD Chart Daily – Rally Under Threat If the 20 SMA Breaks
After bottoming out in early April, AMD’s shares enjoyed a remarkable three‑month rebound, rising over 100 percent as sentiment improved in the semiconductor sector. This recovery was supported by easing U.S.–China trade tensions and a resilient broader technology market, which helped drive consistent buying momentum. Despite this, the weaker earnings report has shaken investor confidence, and the sharp after‑hours drop suggests that the rally is now at risk of a deeper retracement.
Technical Levels in Focus
AMD is now approaching its 20‑day simple moving average around $164, a level that has acted as a strong short‑term support throughout its recent rally. A decisive break below this support could invite additional selling pressure and signal that the uptrend is losing strength. On the other hand, if the stock holds above this level, the broader bullish structure may remain intact.
Advanced Micro Devices Financial Performance
- Revenue: $7.7 billion, up 32% YoY, marking an all-time quarterly high.
- GAAP EPS: $0.54 vs $0.16 last year; Non‑GAAP EPS: $0.48, down 30% YoY.
- Gross Margin: 40% GAAP and 43% non‑GAAP; would have approached 54% excluding ~$800M in MI308 export-related charges.
- Net Income: $872 million GAAP; $781 million non‑GAAP.
- Free Cash Flow: $1.18 billion, a company record.
Segment Highlights
- Data Center: $3.24 billion (+14% YoY), driven by EPYC CPUs; partially offset by MI308 export limits.
- Client: $2.50 billion (+67% YoY), a record, supported by Ryzen 7000/Zen 5 sales and a richer product mix.
- Gaming: $1.12 billion (+73% YoY), boosted by semi‑custom console demand and Radeon GPUs.
- Embedded: $824 million (‑4% YoY), reflecting uneven end‑market conditions.
Operational Updates
- AI Acceleration: MI300 GPUs now deployed across Azure, AWS, and Oracle, with xAI in testing.
- MI355X Launch (June 2025): Features CDNA 4 architecture, 288 GB HBM3E, and 20 PFLOPS FP6.
- Next‑Gen Preview: MI400/Helios GPUs slated for 2026, promising 10× AI inference performance and 432 GB HBM4 per GPU.
- Export Impact: MI308 China ban triggered ~$800 million in charges.
Guidance & Outlook
- Q3 2025 Revenue: ~$8.7 billion ± $300 million, ~28% YoY growth at midpoint.
- Non‑GAAP Gross Margin: ~54%, assuming no MI308 shipments to China.
- Full‑Year Outlook: H2 growth driven by MI350 ramp, EPYC CPUs, and Ryzen momentum
Conclusion: The Q2 earnings miss has disrupted AMD’s powerful rebound and placed its short‑term uptrend in question. Traders and investors will be watching closely to see if the stock can maintain support around its key moving average; failure to do so could lead to a deeper pullback, while a rebound would reaffirm the market’s longer‑term confidence in AMD’s growth story.
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