What's Going On With AMD Stock Thursday?

Nvidia Corp's NVDA upbeat second-quarter results have spurred a selloff in peer Advanced Micro Devices, Inc AMD.

Nvidia reported quarterly earnings of $2.70 per share, which beat the consensus of $2.09. The company said quarterly sales of $13.51 billion, up by 101.52% year-on-year, quashing the consensus of $11.22 billion.

Nvidia issued third-quarter revenue guidance of $16.00 billion, plus or minus 2%.

Earlier in August, AMD posted its Q2 results. Quarterly earnings of 58 per share surpassed the consensus of 52 cents. The revenue fell 17.56% year-over-year to $5.36 billion vs. the consensus of $4.81 billion.

With Gamescom 2023 underway, AMD could launch its new Radeon RX 7800 and RX 7700 series graphics card on August 25, per reports. AMD AIB partners like ASRock and Powercolor have teased their versions already. According to fresh rumors, custom versions could launch on August 26.

Also, Thursday, AMD expressed AI as its priority as it snapped Mipsology, a leader in AI software and long-standing AMD partner based in Palaiseau, France. The financial terms of the transaction remain undisclosed.

Mipsology has proven expertise in delivering AI software and solutions running on top of AMD adaptive computing silicon. Specifically, the team will help pave the way for streamlined deployment of AI models running on AMD hardware.

AMD held $6.3 billion in cash and equivalents as of July 1.

AMD also bagged a deal with Samsung Electronics Co, Ltd SSNLF to leverage its cutting-edge HBM3 memory and the respective packaging technology for MI300X GPUs.

Apart from AMD, Nvidia is also eying Samsung as a potential supplier, as Taiwan Semiconductor Manufacturing Company Ltd TSM failed to fulfill the immense demand from the AI industry.

Price Action: AMD shares traded lower by 7.69% at $101.12 on the last check Thursday.