Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) are down 6% to $486.60 Wednesday morning despite a record Q2 2026 report after Tuesday’s close. Meanwhile, NVIDIA (NASDAQ:NVDA) stock is climbing 4% to $221.33 after SpaceX (NASDAQ:SPCX) named the chip giant its exclusive AI chip supplier for the new Starmind orbital compute program.
The split reaction is sorting the AI trade into clear winners and losers today. Intel (NASDAQ:INTC) stock is down 1% to $101.10 with no company-specific catalyst, Broadcom (NASDAQ:AVGO) shares are up 1% at $423.59, and the iShares Semiconductor ETF (NASDAQ:SOXX) is unchanged/flat at $540.91.
For context, SpaceX stock cratered 12% this morning after the company’s first public earnings report.
A Record Quarter That Wasn’t Enough
AMD reported Q2 2026 revenue of $11.5 billion, up 50% year over year (YoY), with non-GAAP EPS of $1.66 topping the roughly $1.61 consensus. The company’s data center revenue more than doubled YoY to $6.7 billion and now represents 58% of total sales.
AMD CEO Lisa Su declared, “We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year.” Her tone stayed upbeat despite the after-hours selloff.
Furthermore, AMD’s Q3 guidance came in at about $13 billion (plus or minus $300 million), above the roughly $12.5 billion consensus but below whisper numbers near $14 billion. The company’s capex jumped to $808 million from $282 million a year earlier, and management flagged a softer second-half PC market.
AMD stock was already priced for perfection heading into the earnings print. Shares have more than doubled this year and trade at a rich 152.98x trailing P/E ratio, so a solid beat that wasn’t a blowout disappointed the bulls.
NVIDIA Gets the SpaceX Nod
SpaceX founder Elon Musk called NVIDIA’s Vera Rubin the best architecture available and committed SpaceX to NVIDIA chips exclusively for its Starmind orbital compute program. That announcement is a competitive snub for AMD, which had been positioning its Instinct MI450 family as a hyperscaler alternative.
NVIDIA stock trades at a comparatively reasonable 33.86x trailing P/E ratio versus AMD’s 152.98x. The read-through from SpaceX’s massive AI compute spending reinforces the hyperscaler GPU demand narrative that has powered NVIDIA shares this year.
The Sector Reaction Is Contained
Intel stock only declining 1% with no company-specific catalyst today signals that AMD’s selloff isn’t spreading to the broader chip group. Broadcom shares are up 1% and trade at a 66.3x trailing P/E ratio, while the SOXX ETF is unchanged today and trades at a 38.04x P/E ratio.
The SOXX fund holds AMD, NVIDIA, Intel, and Broadcom in a single basket, and the ETF’s unchanged share price suggests that AMD’s issues aren’t sparking a sector-wide selloff. The fund isn’t leveraged, though investors should keep their exposure sized to reflect SOXX’s heavy concentration in the same handful of AI-exposed names.
Intel has no trailing P/E ratio because it isn’t profitable on a trailing 12-month basis, though the company’s AI inferencing pivot has helped Intel shares rally sharply this year. Broadcom’s custom AI accelerator momentum, meanwhile, keeps it a live competitor to both NVIDIA and AMD.
Analysts Stay Bullish as the Bar Stays High
Even with today’s drop, sell-side analysts stuck with AMD stock. Wells Fargo raised its AMD price target to $700 from $615 (Overweight), Jefferies to $650 from $640 (Buy), and JPMorgan to $550 from $385 (Neutral). Citi kept AMD as a top Buy pick and KeyBanc stayed Overweight.
TD Cowen and Bernstein both flagged the very high bar heading into the report, which helps explain why a strong quarter still triggered profit-taking. The bull case for AMD stays intact, with the company guiding data-center revenue to more than double in 2027, AI GPUs growing well over 100%, and revenue growth above its 35%-plus target.
Investors can watch for whether AMD stock holds $492 into the close, and whether NVIDIA stock can extend its move as SpaceX’s AI capex figures filter through the sell side. Momentum traders may keep both names active through the afternoon.
The SOXX ETF can serve as a real-time gauge of how much of today’s story is company-specific versus a broader repricing of the AI hardware trade. Stay tuned for any late-day reversal in AMD, along with any sudden changes in Intel and Broadcom shares.
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