Advanced Micro Devices (AMD) Posts Record Sales, But Musk’s NVIDIA (NVDA) Pledge Sinks the Stock

Advanced Micro Devices (AMD) reported record sales in the latest quarter, with revenue soaring 50% year-over-year to $11.5 billion. However, the company's stock fell by more than 8% following SpaceX CEO Elon Musk's statement that his company would exclusively use NVIDIA chips going forward. AMD's data center revenue doubled to $6.7 billion, accounting for 58% of total sales.

Despite these strong results, CEO Lisa Su's assurances of growth in server revenue did not seem to sway investors' sentiment. NVIDIA shares, on the other hand, rose 3.4% despite no new earnings being announced, highlighting the significant influence Musk's endorsement of NVIDIA can have on the market. AMD's success is bolstered by supply deals with OpenAI, Meta, and Anthropic, but the company's stock still declined due to the symbolic loss of NVIDIA's exclusive business.