Advanced Micro Devices (AMD) shares fell approximately 6% after the release of its second-quarter 2026 earnings, which reflected a remarkable 50.1% year-over-year revenue growth and a 246% increase in earnings. Despite strong financial results, investors expressed concern over a weak Client and Gaming business and increased competition from NVIDIA, Broadcom, and Intel. AMD’s stock was down about 8% on Wednesday but saw a 1.5% recovery on Thursday.
The Zacks Consensus Estimate for AMD’s upcoming third-quarter earnings stands at $1.89 per share, indicating a 57.5% increase year-on-year. Meanwhile, the company’s shares are trading at a premium with a forward P/E ratio of 45.8X compared to its peers, despite outperforming the Zacks Computer and Technology sector year-to-date.
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