AMD Reports Strong Growth Despite Stock Decline
Advanced Micro Devices (AMD) announced a 34% increase in quarterly revenue, reaching over $10 billion, and reported a gross margin expansion to 54% for the period ending February. The company’s Chief Executive Officer, Lisa Su, projects significant sales growth as demand for high-performance and AI computing rises. Despite these positive earnings, AMD’s stock dropped 17% following the report, partly due to a lower-than-expected first-quarter revenue forecast of $9.8 billion, compared to analyst expectations of $9.3 billion.
AMD’s strong quarterly earnings come during a highly competitive landscape with Nvidia, which is expected to report its own fiscal 2026 fourth-quarter earnings on February 25. Analysts anticipate Nvidia’s revenue to increase 67% year-over-year to over $65 billion. Given AMD’s recent stock performance, investors are left uncertain about Nvidia’s potential market reaction, even if its earnings meet or exceed expectations.
