By RIA Team
Publication Date: 2026-08-07 09:05:00
AMD and SanDisk (SNDK) delivered earnings beats this week, yet both stocks fell. AMD posted record revenue up 50% year over year, with data center revenue more than doubling. Its CEO Lisa Su said she expects “Data Center sales to accelerate in the second half of 2026.” Guidance for the current quarter came in near Wall Street estimates, but it fell short of “whisper” expectations. Despite the seemingly good earnings, AMD shares initially fell by more than 8% and remain down by a similar amount a few days later.
SanDisk’s earnings report was similar. Its EPS beat consensus by more than 12%, revenue grew by a whopping 372% year over year, and gross margins held at 78%. Shares still fell roughly 10%, because guidance for the coming quarter was slightly below the more bullish estimates.
The thread across AMD, SNDK, and other AI-related stocks is that investors are expecting absolute perfection not only in what happened but in guidance for what will happen. The market reactions to AMD and SNDK allow us to start focusing on Nvidia’s earnings report, due August 26. If AMD’s data center revenue can more than double and still disappoint, and if SanDisk’s margins can hold at 78% and still disappoint, Nvidia’s bar is set equally high. Nvidia guided Q2 fiscal 2027 revenue to approximately $91 billion, which would mark another 11.5% sequential increase and roughly 80% annual growth. We think NVDA investors will heavily rely on guidance including: