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AMD Stock: Strong Earnings Met With Market Skepticism

Felix Baarz by Felix Baarz
August 7, 2025
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AMD reported impressive Q2 results, with record sales in server processors and gaming chips driving revenue to $7.69 billion, surpassing expectations of $7.42 billion. Despite this, shares fell 6.4% as investors reacted to flat gross margins and rising operational costs. Analysts remain bullish, with several firms raising price targets to as high as $230, citing AMD’s "beat-and-raise" performance and strong Q3 guidance of $8.7 billion in projected revenue.

GPU Demand Offsets China Concerns

The MI350 GPU series is expected to fuel record Q3 GPU sales, with pre-orders stretching into 2026. Seven of the top ten AI firms now use AMD’s Instinct chips, positioning the company for potential 10% GPU market share by 2029. While delays in MI308 exports to China pose risks, the MI355 lineup is projected to drive 60% quarterly growth in data center GPUs. A prominent investment fund also made a $40 million AMD purchase, signaling long-term confidence.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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