AMD Q2 Earnings Beat but Stock Slumps on Musk's Nvidia Commitment for SpaceX

AMD reported Q2 2026 revenue of $11.54B (beat estimates) with data center sales doubling, but shares fell ~8% after Elon Musk stated SpaceX would use Nvidia chips exclusively.

Advanced Micro Devices delivered a solid second-quarter performance on August 4, 2026, with revenue climbing 50% year-over-year to $11.54 billion, narrowly topping analyst forecasts, while adjusted EPS came in at $1.66. Data center segment sales doubled, underscoring robust demand for its AI accelerators amid the broader infrastructure buildout. However, the positive results were overshadowed by comments from Elon Musk during Tesla's earnings call, where he confirmed SpaceX would pivot entirely to Nvidia GPUs, citing superior performance for demanding workloads. This announcement triggered immediate selling in AMD shares, which dropped more than 8% in after-hours trading. The reaction highlights Nvidia's entrenched dominance in the high-end AI chip market and the challenges AMD faces in converting design wins into sustained revenue momentum against its rival. Traders should monitor AMD's ability to secure alternative hyperscaler commitments and any follow-through on its roadmap for next-generation MI series accelerators. Sector implications extend to the broader semiconductor supply chain, with potential ripple effects on TSMC (AMD's foundry partner) and memory suppliers like Micron. In the near term, watch for hyperscaler capex updates and any clarification from Musk on whether the Nvidia preference extends beyond SpaceX to other ventures. Overall, the event reinforces Nvidia's moat while pressuring AMD's valuation despite underlying demand strength.