Shares of Advanced Micro Devices (AMD) fell 5.1% in intraday trading on Thursday, as investors took profits following the company's strong rally after its impressive second-quarter earnings report. The pullback came amid broader concerns about potential market volatility in the coming months and a general decline in semiconductor stocks.
On Tuesday, AMD reported better-than-expected revenue and earnings for the second quarter, driven by robust growth in its data center business. The company's data center segment revenue surged 115% year-over-year, fueled by strong demand for its Instinct AI accelerators and 4th Gen CPUs. AMD's overall revenue grew 8.9% year-over-year to $5.84 billion, while its net income jumped to $265 million, up from $27 million in the same period last year.
Following the impressive results, AMD's stock rallied, gaining over 5% on Wednesday. However, the momentum faded on Thursday as investors took profits and concerns about broader market performance resurfaced. Some analysts have warned that the stock market could face a pullback in August and September after a strong July, with the S&P 500 potentially declining more than 15% by the end of the year.