Advanced Micro Devices (AMD) stock price fell 8.6% during premarket hours on Wednesday despite posting a solid Q2 earnings and revenue beat. Overall, quarterly revenue rose to $11.53 billion year-over-year from $7.68 billion as adjusted EPS surged to $1.66 from $0.48 a year earlier. The company also posted in-line Q3 guidance. It expects $13 billion in revenue, plus or minus $300 million.
However, the pressure on the stock could be attributed to a 33% year-over-year decline in gaming business revenue to $779 million from $1.12 billion. At the same time, capex surged during the quarter to $808 million, nearly tripling from $282 million a year earlier. Note that capex in Q2 nearly doubled sequentially from $389 million in Q1.
