{
  "id": 151246,
  "title": "AMD's AI-powered revenue forecast fails to wow investors",
  "url": "https://urgent.news/2026/08/04/amds-ai-powered-revenue-forecast-fails-to-wow-investors",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-04T20:17:49.000Z",
  "source": {
    "name": "Channel News Asia",
    "slug": "channel-news-asia",
    "url": "https://www.channelnewsasia.com/business/amds-ai-powered-revenue-forecast-fails-wow-investors-6299001"
  },
  "original_language": "en",
  "account": "AMD forecasted quarterly revenue above Wall Street estimates on August 4, driven by robust demand for its chips from expanding data-center capacity to support AI technologies. However, its shares dropped nearly 9% in extended trading, as investors sought a more compelling outlook following a more than doubling of the stock this year due to AI optimism. Analyst Jacob Bourne noted that AMD now stands in a similar position to Nvidia and hyperscalers, where investors are looking for evidence that AI infrastructure investments will continue to generate accelerating returns. Regarded as Nvidia's closest rival in the graphics processing unit market, AMD is expected to generate third-quarter revenue of about $13 billion, with adjusted gross margins around 56%, according to LSEG data. The company anticipates its data-center sales to more than double in 2027, and has set annual earnings targets above $20 per share for 2025. CEO Lisa Su stated on a post-earnings call that the forecast reflects AMD's investments in challenging Nvidia's dominance in AI chips, with data-center processor sales accelerating in the second quarter. AMD's quarterly data-center revenue more than doubled to $6.72 billion, outpacing forecasts of $6.48 billion, and grew 16.3% sequentially. The company also expects its AI products to provide integrated solutions, allowing it to compete with Nvidia's rack-scale offerings. AMD's 2027 rack-scale AI platform will include MI500 GPUs, Verano CPUs, and Pensando networking, supporting both copper and optical connectivity. The company has secured significant customers and infrastructure agreements, including a deal with Anthropic to purchase AI servers and up to $5 billion in investment.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}