AMD shares fall despite 50% revenue jump as flat Q3 margin guidance disappoints

Advanced Micro Devices reported record Q2 2026 revenue of $11.54 billion, up 50% from a year earlier, as data center revenue doubled and the Data Center unit generated 58% of total sales. Shares fell after AMD guided for a flat 56% gross margin in the third quarter, even as it projected strong Q3 revenue and Baird raised its price target to $1,250. The update adds to a mixed market response after Goldman Sachs had downgraded the stock to Sell despite the company's record quarter and continued data center strength.

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