GoKawiilAMD 's stock plunged in premarket trading on Wednesday despite posting earnings that beat expectations, as investor enthusiasm for the Nvidia challenger waned.
The stock was last down 8.7% in premarket trading.
The market jitters come despite AMD revenue climbing 50% to $11.54 billion in the second quarter, ahead of analyst expectations of $11.28 billion, in a sign of the company's central position in the market for AI chips.
Data center sales drove much of the company's growth, up 107% on an annual basis to $6.7 billion, which the company attributed to central processing unit and graphics processing unit sales.
But while second-quarter earnings came in "slightly ahead" of consensus, they fell below "more optimistic estimates," Deutsche Bank analysts said in a Wednesday note.
AMD has been a big beneficiary of the AI boom, with the stock trading up 132% so far this year. Confidence has been buoyed by the company's GPU and CPU products.