AMD Stock Declines Despite Beating First-Quarter Expectations

AMD reported first-quarter earnings that surpassed expectations, with earnings per share (EPS) at $1.37 and revenue reaching $10.25 billion. According to NS3.AI, despite these positive results, AMD's stock fell by nearly 5.7% on Friday, closing at $424.10. The initial surge in AMD's performance was driven by strong demand for its MI-series AI accelerators, Instinct and EPYC processors, and the introduction of Ryzen PRO 9000 workstation chips featuring 3D V-Cache technology. However, CFO Jean Hu indicated that gaming revenue is anticipated to decline in the second half of 2026 due to increased memory and component costs.