AMD shares fall 10% despite record revenue after SpaceX picks Nvidia exclusively for AI

Published Aug 7, 11:03 AM UTC

Advanced Micro Devices (AMD) reported record Q2 2026 revenue of $11.5 billion, up 50% year-over-year, with data center revenue more than doubling to $6.72 billion. Despite beating earnings expectations and raising guidance above Wall Street forecasts, AMD's stock dropped up to 10% on August 5, 2026. The decline was driven by SpaceX's first earnings call as a public company, where CEO Elon Musk announced that SpaceX would build its AI infrastructure exclusively on Nvidia's Vera Rubin architecture, reversing his earlier statement that his companies would buy from both AMD and Nvidia. SpaceX also partnered with Nvidia to build the compute payload for its Starmind AI1 satellite, which will carry Nvidia's Rubin GPUs and Vera CPUs for orbital AI workloads starting in 2027. The decision undercuts AMD's narrative that its chips are a viable alternative to Nvidia for major AI buyers, damaging its growth narrative despite strong quarterly results.