AMD Crashes Despite Big Beat, CapEx Almost Triple Expectations

AMD beat on its top- and bottom-line:

Revenue: $11.54B vs $11.28B expected
Adjusted EPS: $1.66 vs $1.62 expected

Good news.

With Data center revenue up 107% year over year to $6.72B, better than the $6.6B expected.

More good news.

As Bloomberg reports, last month, Chief Executive Officer Lisa Su rolled out new products that the company said will outperform offerings from Nvidia, adopting a more aggressive stance in a market it predicts will reach $1.4 trillion by 2030. That further raised already lofty investor expectations.

The chipmaker forecast that third-quarter revenue will be $13 billion, plus or minus $300 million ($12.5 billion consensus).

The outlook boost is good news, but some Wall Street estimates were well north of $13 billion, according to data compiled by Bloomberg.

Additionally, operating income for the last quarter was only a little better than forecast and clearly traders were hoping for more.

But, AMD shares are down dramatically after-hours, erasing all the day's exuberant gains and then some...

Here's why...

Free cash flow was 20% below forecasts because Q2 Capital Expenditures came in at stunning $808 million, almost triple the $298 million expectation...