{
  "id": 179012,
  "title": "AMD’s shares fall as investors seek bigger AI payoff",
  "url": "https://urgent.news/2026/08/05/amds-shares-fall-as-investors-seek-bigger-ai-payoff",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-05T12:06:34.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/08/05/amd-falls-as-investors-seek-bigger-ai-payoff"
  },
  "original_language": "en",
  "account": "Advanced Micro Devices (AMD) shares experienced a premarket decline on Wednesday as investors expressed skepticism regarding the chipmaker's revenue forecast and their anticipation for a substantial growth driven by the ongoing multibillion-dollar AI spending boom. The stock witnessed a decrease of 8.8%, trading at US$473, and potentially eroding over US$74 billion from its market valuation. The setback was attributed to SpaceX's decision to exclusively utilize rival Nvidia chips for its computing infrastructure, which further weakened AMD's position. This decline highlights the intense expectations AMD faces in the market and emphasizes the significance of securing high-profile customers to bolster its competitive standing against Nvidia and Intel.\n\nAnalyst Stacy Rasgon from Bernstein posited that elevated investor expectations, fueled by Intel's recent results, may have contributed to the premarket slump. Meanwhile, AMD projected third-quarter revenue of approximately US$13 billion, with a potential variation of US$300 million, surpassing analysts' estimates of US$12.52 billion. This projection was met with cautious optimism from analysts at TD Cowen, who acknowledged AMD's results as \"objectively good\" but cautioned that the stock is facing a \"very high bar\" following recent AI-related customer announcements and the substantial rally in its shares.\n\nAMD's CEO, Lisa Su, conveyed optimism regarding the company's prospects, stating that AMD anticipates data-center revenue to more than double by 2027, with total revenue growth projected to exceed its previously outlined target of more than 35%. In the past month, AMD signed agreements with Anthropic and Core Scientific to fortify its AI infrastructure ambitions, signaling a strategic shift towards alternative AI chips. Despite this progress, the stock has faced a considerable challenge, with AMD's shares surging more than double this year due to expectations of Nvidia's dominance in AI chips, intensifying pressure on AMD to deliver robust quarterly results.",
  "summary": "SpaceX's decision to build its computing infrastructure exclusively on rival Nvidia chips dealt another blow to AMD shares.",
  "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."
}