Advanced Micro Devices (AMD) shares fell 3.92% to $620.52 during intraday trading on Thursday, a loss of $25.34 that came despite the company posting record quarterly revenue and profitability. The decline followed an afternoon selloff that pushed the stock toward its session lows before a modest recovery. Meanwhile, rising artificial intelligence infrastructure spending continues to support demand for advanced processors and data center equipment.

AMD Reports Record Revenue as Data Center Sales More Than Double

AMD reported second-quarter 2026 revenue of $11.5 billion, representing a 50% increase from the previous year. The company recorded strong demand for its computing products as technology firms expanded their artificial intelligence operations. However, the positive financial performance failed to prevent Thursday's decline in AMD shares.

The company's Data Center segment generated $6.7 billion in revenue, marking a 107% annual increase. That growth reflected higher demand for the processors and computing systems that support artificial intelligence workloads, and the segment has become a key growth driver for the company. As a result, data center operations remained a major contributor to AMD's quarterly financial performance.

AMD also projected third-quarter revenue of approximately $13 billion, with a possible variation of $300 million. The forecast followed a quarter of record revenue and profitability as the company expanded its presence in data center computing. The outlook comes as infrastructure buildouts by cloud providers and enterprises continue to drive purchases of advanced processors and data center systems. That projection also gives a concrete reference point for the company's next quarterly report, which will show whether results land within the guided range.

Global AI Infrastructure Spending Supports Chip Demand

Research firm Gartner forecasts that worldwide artificial intelligence spending will reach $2.59 trillion in 2026, an increase of 47% from $1.76 trillion in 2025. Gartner also expects global spending to climb further to $3.49 trillion in 2027. These projections reflect expanding technology budgets across cloud computing, enterprise software, and data center infrastructure.

AI infrastructure accounts for $1.43 trillion of projected spending this year, representing more than 45% of total expenditure. Large technology companies continue building computing facilities to train models and operate artificial intelligence services. As a result, demand keeps growing for processors, networking systems, and specialized computing equipment.

Technology stocks also benefited from the spending growth earlier this year, supporting gains across major market indexes. The Nasdaq Composite has advanced approximately 17% during 2026, reflecting strength across the broader technology sector. AMD's latest decline, however, showed that strong industry demand does not prevent individual semiconductor stocks from falling.

Microsoft, Meta, and Broadcom Expand AI Spending

The spending momentum extends across the industry's largest technology companies. Microsoft reported fiscal fourth-quarter 202 revenue of $90 billion, representing an 18% increase from the previous year. Its cloud business generated $59.3 billion, while Azure and related cloud services recorded 43% revenue growth. Microsoft also surpassed $100 billion in annual Azure revenue as demand for cloud computing services expanded.

Meta Platforms reported second-quarter revenue of $60.80 billion, increasing 28% compared with the previous year. The company recorded $31.08 billion in quarterly capital expenditures and outlined substantial infrastructure investment plans. Meta expects full-year capital spending between $130 billion and $145 billion to support its technology expansion.

Broadcom reported fiscal third-quarter revenue of $29.6 billion, reflecting an 86% annual increase. Its artificial intelligence semiconductor business generated $16.7 billion, representing 221% growth from the previous year. Broadcom also projected fourth-quarter revenue of $34.8 billion, including $21.7 billion from artificial intelligence semiconductors.

Taken together, the cloud revenue growth and capital budgets at Microsoft and Meta illustrate the scale of the infrastructure buildout underway across the industry, while Broadcom's fourth-quarter projection and Gartner's 2027 forecast provide published benchmarks for tracking whether that spending continues at its current pace in coming quarters.

Source: Blockonomi