- Ziggma
- Posts
- 🗞️ AMD Tanks On Earnings Miss
🗞️ AMD Tanks On Earnings Miss
AMD, HIMS, and VRTX
In partnership with
Market Performance
S&P 500: 6,299.19 (-0.49%)
Nasdaq: 20,916.55 (-0.65%)
Dow Jones: 44,111.74 (-0.14%)
AMD’s AI Sales Hit by Export Roadblocks
Advanced Micro Devices (AMD) delivered mixed second-quarter results on Tuesday, with revenue beating expectations at $7.69 billion but earnings falling short at $0.48 per share versus the $0.49 expected.
The stock dropped over 6% in after-hours trading despite strong forward guidance of $8.7 billion for the current quarter.
The chipmaker's AI story remains complicated due to geopolitical tensions. Export restrictions on AMD's MI308 chips to China cost the company $800 million in the quarter, with CEO Lisa Su noting that "AI business revenue declined year over year as U.S. export restrictions effectively eliminated MI308 sales to China."
However, there's hope on the horizon as AMD expects shipments to resume after the Trump administration signaled approval for waivers, though the current outlook doesn't include revenue from China.
AMD's positioning as Nvidia's key competitor in AI continues to strengthen, with seven of the top 10 AI companies now using AMD's Instinct chips.
The company's newest MI350 chip is competitive with Nvidia's GB200 for both training and inference workloads.
Our Takeaway
AMD's strong gaming (+73%) and client CPU (+57%) growth shows diversification beyond AI is paying off.
While export controls create near-term headwinds, the company's expanding AI partnerships and competitive next-gen chips position it well for 2025's AI infrastructure buildout.
Big investors are buying this “unlisted” stock
When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.
Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.
And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.
Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.
Market Overview
Tuesday's market pullback reflected growing concerns about economic momentum as the ISM Services index flatlined at 50.1, just above contraction territory and below the 51.2 estimate.
This reading, combined with last week's disappointing jobs data, is stoking stagflation fears, a toxic combination of slowing growth and persistent inflation pressures.
President Trump's tariff comments added fuel to the fire, with his announcement that semiconductor and pharmaceutical tariffs are coming "within the next week or so."
Trump told CNBC he wants chips "made in the United States" and suggested pharmaceutical tariffs could reach 250%, his highest threatened rate to date.
Despite the weakness, some strategists remain optimistic about the broader trajectory.
UBS Global Wealth Management expects "further gains over the next year," citing expectations for Fed rate cuts beginning in September with 100 basis points of easing by early 2026.
However, Wolfe Research warns of continued "choppy trading" through summer as economic data sensitivity heightens.
Stock Moves Deciphered 📈
Axon (AXON) - Axon reported adjusted earnings per share of $2.12 on revenue that increased 33% year-over-year, its 14th consecutive quarter with a gain above 25%, to $668.5 million. Analysts had expected earnings of $1.44 per share and revenue of $641.0 million.
Ralph Lauren (RL) - Needham raised its price target on the luxury retailer to $335 (+10% upside) on a successful brand elevation strategy and strong consumer resonance, well-insulated from macro headwinds. RL stock dipped almost 2% yesterday.
DigitalOcean (DOCN)- The cloud infrastructure provider surged 27% on Q2 beat and raised guidance, benefiting from increased demand for AI and machine learning workloads among developers.
Headlines You Can't Miss
Palantir surged 7.9% as quarterly revenue exceeded $1 billion for the first time, raising full-year guidance.
Pfizer jumped 2.8% after beating Q2 earnings expectations and boosting full-year guidance on cost cuts.
Staar Surgical ripped 45% higher on Alcon's $1.5 billion buyout offer at $28 per share.
DuPont rose 5% in premarket after beating Q2 estimates and incorporating tariff impacts in raised guidance.
Coinbase dropped 5% after announcing $2 billion in convertible senior bond sales.
Trending Stocks
Caterpillar (CAT) — The industrial giant disappointed with Q2 earnings of $4.72 per share, missing the $4.90 estimate, though revenue of $16.57 billion beat expectations. Shares initially fell 3% but recovered to close flat as investors focused on the revenue beat and maintained the full-year outlook.
CEO Quote🎤: "We continued to see strong orders across our segments as demand remains resilient supported by infrastructure spending and growing energy needs.”
Vertex Pharmaceuticals (VRTX)- The biotech stock plunged 14% despite beating Q2 estimates with $4.52 per share earnings and $2.96 billion revenue. Investors focused on concerns about competitive pressures in the cystic fibrosis market and slower-than-expected uptake of newer therapies.
CEO Quote🎤: “As we enter the second half of the year, we are focused on expanding leadership in cystic fibrosis, executing the launches, advancing the pipeline, and preparing for submissions and commercialization in additional disease areas.”
Hims & Hers Health (HIMS)- Shares tumbled 12% after the telehealth company issued disappointing Q3 guidance, expecting $60-70 million in adjusted EBITDA versus a consensus of $77 million. Growing competition in telehealth and regulatory headwinds are pressuring margins.
CEO Quote🎤: “We believe we’re entering an exciting period of growth where we’ll enter new, high-impact specialties that bring millions of people in need of care into the market. We expect this broadening offering will transform our platform from a place where customers come to solve a single issue, to one where customers can proactively manage their overall health.”
What’s Next?
Key Earnings Today 👇
McDonald’s (MCD): Q2 revenue forecast at $6.7 billion vs. $6.49 billion last year. Adjusted earnings are expected to grow from $2.97 per share to $3.15 per share.
Disney (DIS): Q2 revenue forecast at $23.75 billion vs. $23.16 billion last year. Adjusted earnings are expected to grow from $1.39 per share to $1.44 per share.
AppLovin (APP): Q2 revenue forecast at $1.22 billion vs. $1.08 billion last year. Adjusted earnings are expected to grow from $1.17 per share to $2.32 per share.
Track upcoming news and earnings on your portfolio companies with Ziggma.
Chart of the Day
Source: App Economy Insights
Meme of the Day
Great investing starts with great information.
Forward The Market Scoop to anyone who wants to stay ahead of the market through a pertinent and entertaining newsletter format.
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.