AMD fell 8% in after-hours trading after second-quarter earnings that beat estimates failed to offset in-line third-quarter guidance. The drop came alongside a scattered batch of earnings reactions across SpaceX, Arista Networks, Wynn Resorts and other companies, while separate data showed outstanding margin debt at a record high.
AMD plunged 8% in after-hours trading, even though the chipmaker's second-quarter results topped Wall Street's targets. The company earned an adjusted $1.66 per share on $11.54 billion in revenue, slightly ahead of the LSEG consensus estimate. But third-quarter revenue guidance of about $13 billion landed roughly in line with expectations, giving investors little to get excited about beyond the current quarter.
Other earnings reactions swing sharply in both directions
SpaceX fell 7% after its first quarterly report since going public in June. The rocket company's capital expenditures reached $18.37 billion in the second quarter, up 550% from a year earlier, largely on artificial intelligence spending. Revenue of $7.81 billion beat the LSEG consensus of $6.93 billion, though the company's 9-cent per-share loss wasn't clearly comparable to the 26-cent loss analysts had expected.
Pinterest also slid, dropping 8% after third-quarter revenue guidance of $1.19 billion to $1.21 billion failed to impress traders, even though its second-quarter results beat estimates on both lines. Teradata slumped 17% after third-quarter earnings guidance of 55 to 59 cents a share, excluding one-time items, trailed the Street's 62-cent estimate.
Not every report landed poorly. Arista Networks gained 11% after adjusted earnings of $1.02 a share on $3.04 billion in revenue beat the consensus call for 88 cents and $2.82 billion, with third-quarter guidance also ahead of estimates. Wynn Resorts jumped 7% after adjusted earnings of $1.24 a share on $1.86 billion in revenue topped forecasts of $1.11 and $1.84 billion. Booking Holdings advanced more than 5% after second-quarter gross bookings of $51 billion beat the Street's $49.35 billion estimate.
Margin debt reaches a record as AI leverage draws scrutiny
The scattered earnings reaction followed a separate warning sign tied to the broader stock market. FINRA data show outstanding margin debt soared 77% between April 2025 and June 2026 to an all-time high of $1.502 trillion. Historically, margin debt increases of 65% or more over a short stretch have preceded steep market declines, including an 80% rise before the dot-com bust and a 66% rise in the 13-month run-up to the financial crisis.
That pattern echoes the leverage that reportedly undid Leopold Aschenbrenner's AI-focused hedge fund, Situational Awareness. Its assets under management, which had peaked at $45 billion, plunged to around $10 billion by July 30, according to people familiar with the matter, after Aschenbrenner reportedly used up to 400% leverage on some of the fund's positions.
Sources: CNBC, The Motley Fool
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