AMD falls about 8% in premarket despite beat-and-raise quarter as investors seek bigger AI upside

AMD shares came under added pressure after Elon Musk said on SpaceX's first earnings call that the company would build its artificial intelligence systems exclusively on Nvidia chips, a move that lifted Nvidia and weighed on AMD despite AMD's record quarter. SpaceX said it chose Nvidia's Vera Rubin architecture for future AI systems on the ground and in space through Starmind, its plan to fly data-center computers on satellites from next year. The announcement made SpaceX a major Nvidia customer while shutting out rivals, including AMD, which had counted SpaceX among customers using its AI chips. SpaceX reported revenue rose 92% from a year earlier to $7.8 billion and adjusted profit, measured by EBITDA, reached $3.5 billion, with its AI unit's sales up 247%. But investors focused on spending rather than earnings. Capital expenditure totaled $18.37 billion in the quarter, including about $15.8 billion for AI computing, while filed results showed $14.1 billion of AI cloud sales under contract, below what it spent on AI in the same period. Nvidia rose about 3.4%, while AMD fell about 6% even after data-center revenue rose 107% from a year earlier. Lisa Su said AMD remained proud to work with SpaceX, according to CNBC. SpaceX shares closed down about 14% on Wednesday. The decline came as roughly 911.5 million insider shares were set to become eligible for trading on Thursday in the first lock-up expiration, lifting the public float from under 5% to about 12%. Musk's stake of roughly 6.4 billion shares remains locked until June 2027. Options positioning also turned more cautious, with SpaceX's put-call ratio by volume rising to 1.16 on Wednesday from 0.87 on the day of the call, while open interest stood at 0.92. Analysts remain divided on whether the exclusive Nvidia buildout will drive long-term profit or leave SpaceX exposed to rising costs from relying on one supplier.