AMD Forecast Disappoints as Investors Seek Bigger AI Payoff

Summary

Kunjan Sobhani of Bloomberg Intelligence discussed AMD's latest earnings and outlook. He said results were broadly in line and the stock drop reflected high expectations, with the CPU business remaining strong and underappreciated. He noted AMD's GPU growth may pause in the first half of 2026 before its first full rack-level solution launches in the second half, which he views as a make-or-break catalyst for competing with Nvidia.

• AMD's results and outlook were roughly in line with expectations.
• The stock fell as high estimates near $9.9-10B wanted more upside.
• CapEx was light but not a major concern for AMD.
• The CPU business remains strong and underappreciated.
• GPU growth is expected to pause in H1 2026.
• H2 2026 rack-level solution is key for AMD's AI GPU story.
• That solution must compete with Nvidia and gain customer traction.
• Management's earnings call focus includes CPU strength and GPU qualifications.