If I had a dollar for every "Don't buy Nvidia, buy AMD" headline, I’d probably have $100. Maybe more if we count the ones from the past year alone. Yet, here we are… AMD stock is down 8% this morning, despite what looked like a solid earnings report. Makes no sense, right? Well, welcome to the stock market… where logic is a suggestion, not a rule (kind of like U-turns in Florida).

It really is a mystery. AMD came in with a respectable $7.7 billion in revenue for the quarter, beating Wall Street’s estimate of $7.5 billion (by $200 million). They also posted adjusted earnings per share of $1.09, just edging out the $1.08 consensus. So far, so good. Even the client segment (the part of the business that sells chips for laptops and desktops) were way above expectations with a 58% YoY growth to $2.31 billion.

But data center revenue (apparently the only thing AI bros care about)  came in light. AMD’s data center unit generated $3.86 billion, missing the $4.14 billion forecast. Forget how well every other part of the business is doing, let’s throw the baby out with the bathwater.

Despite a 70% YoY gain in AMD’s data center segment, it still wasn’t enough to satisfy the AI-hungry market. Analysts and investors are looking at Nvidia’s nearly $80 billion in AI-related revenue over the past year and wondering why AMD isn’t putting up similarly absurd numbers. Never mind the fact that Nvidia has been a dominant player for years and AMD is just starting to carve out its piece of the pie… Wall Street doesn’t do patience.

KeyBanc analyst John Vinh cut his price target on AMD to $140 but still sees long-term potential, while Bank of America’s Vivek Arya took a more skeptical approach, dropping his target to $135 and basically saying, “Sure, AMD is cool, but can they really take market share from Nvidia?” (To me this is just saying: “We’re not sure, so we’re going to overreact.”)

Probably. AMD is still forecasting growth, with CEO Lisa Su confidently stating that AI revenue will hit “tens of billions” in the coming years. Plus, they’re launching the MI350x accelerator in 2025, which could give them a stronger foothold in the AI chip game. But for now, Wall Street wants immediate gratification, and anything short of meteoric AI revenue is grounds for a sell-off.

If you’re holding AMD, today probably stings. But unless you bought in at the top and are now rethinking all your life choices, this could just be another case of the market throwing a tantrum over expectations. In my opinion, AMD isn’t crumbling… they’re just not on Nvidia’s level yet. And for some investors, that’s enough reason to panic-sell. But if you’re playing the long game, this might just be a discounted entry point before AMD finally gets its AI moment.

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Stock.News does not have positions in companies mentioned.