Capitalize on the recent 9% post-earnings pullback in Advanced Micro Devices (AMD) to build a long-term position, as the core business fundamentals remain exceptionally strong.

The true growth catalyst for AMD will arrive in late Q3 and Q4 through the commercial ramp of the Helios rack-scale system and MI450/MI500 series chips.

Look for entry opportunities in NVIDIA (NVDA) as well, supported by a newly announced exclusive hardware commitment from SpaceX utilizing the upcoming Vera Rubin architecture.

While SpaceX is scaling its AI cloud operations rapidly, expect near-term profitability to take a back seat to aggressive infrastructure spending through its Colossus data center initiative.

Advanced Micro Devices (AMD)

• AMD reported second quarter revenue of $11.54 billion versus an estimated $11.3 billion, along with an adjusted earnings per share (EPS) of $1.66 versus $1.62 estimated.
• Data center revenue more than doubled year-over-year, reaching $6.7 billion and representing 58% of total revenue.
• For the third quarter, the company guided revenue to approximately $13 billion, exceeding the $12.5 billion analyst consensus.
• Capital expenditures spiked to $808 million compared to the expected $298 million, driven heavily by R&D and infrastructure investments for the new Helios rack-scale AI platform.
• CEO Lisa Su noted that AMD expects data center segment revenue to more than double year-over-year in 2027 and stated that the company will significantly exceed its prior long-term EPS target of $20.
• Despite strong financial performance and a raised outlook, the stock dropped roughly 9% after hours following a massive 150% year-to-date gain, leading analysts to conclude the strong results were largely "priced in."

Takeaways

• Long-term investors should view the post-earnings stock pullback as a normal correction given AMD's massive run-up rather than a deterioration of business fundamentals.
• The true inflection point for AMD's AI story begins in late Q3 and into Q4 with the full ramp of the Helios rack-scale system and the MI450/MI500 series chips.

SpaceX (SPACE)

• SpaceX reported second-quarter revenue of $7.8 billion, beating consensus estimates of $6.8 billion to $6.9 billion.
• The company posted a GAAP loss of $9 cents per share, outperforming the expected loss of roughly 20 to 24 cents.
• Segment performance included $962 million from the space segment (rocket launches) and $4.92 billion from the connectivity segment (Starlink).
• Capital expenditures hit $18.37 billion, with the vast majority allocated directly to scaling AI infrastructure and the Colossus data center compute clusters.
• CEO Elon Musk announced during the earnings call that SpaceX is committing to using NVIDIA (NVDA) GPUs exclusively moving forward, specifically citing the Vera Rubin architecture.
• The company added 1.7 million net Starlink subscribers in the quarter, bringing its operational broadband satellites in orbit to roughly 10,200.
• Despite beating top- and bottom-line estimates, the stock faced downward pressure, dipping roughly 3% after hours amid valuation concerns and a massive upcoming share unlock.

Takeaways

• SpaceX is scaling its AI cloud operations rapidly, but its heavy capital expenditure requirements mean near-term profitability will remain secondary to aggressive infrastructure expansion.
• The exclusive commitment to NVIDIA hardware is a massive validation for NVIDIA's ecosystem and suggests strong ongoing demand for high-end AI compute clusters.