AMD falls as investors seek bigger AI payoff

thestar.com.my Aug 5, 2026

AMD falls as investors seek bigger AI payoff

Curated by Shubham · TechCapsules · Aug 5, 2026

AI-summarised brief · reviewed before publication

Advanced Micro Devices shares plummeted 6.6% to $482.53, wiping out nearly $59 billion in market value, as its revenue forecast disappointed investors demanding faster AI growth translation. The decline was exacerbated by Elon Musk’s announcement that SpaceX will exclusively use rival Nvidia chips for its computing infrastructure, boosting Nvidia’s stock by 3.3%. Despite beating analyst estimates with a third-quarter revenue forecast of approximately $13 billion and doubling data-center revenue to $6.72 billion, AMD faced a "very high bar" set by recent customer wins with Anthropic and Core Scientific. Analysts noted elevated expectations following Intel’s results. CEO Lisa Su projected data-center revenue to more than double by 2027, exceeding previous growth targets. However, supply constraints on TSMC’s N3 process and CoWoS packaging remain risks through 2027, complicating AMD’s effort to close the gap with Nvidia and Intel in the competitive AI chip market.

💡 Why It Matters

· This reaction proves that even objectively strong financial results cannot satisfy markets when investor expectations are inflated by the AI hype cycle.
· It underscores the immense pressure on second-tier chipmakers to deliver immediate, tangible dominance rather than just promising future growth.

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Roblox value tanks 72% as viral hits dry up and execs try…

Roblox’s shares have plunged 72% year‑over‑year after the company’s Q2 earnings revealed a shortfall in monetization despite stable engagement. CEO David Baszucki and CFO Naveen K. Chopra told investors that the dip stems from a strategic shift toward “evergreen” games and an older 18‑plus audience, moving away from the short‑lived, high‑spending viral titles that previously drove revenue. The firm attributes lower spending to a revised recommendation algorithm that favors long‑term retention over immediate purchases, reducing impressions for high‑monetizing “vintage” games. While daily active users remain at 123 million, most are under 17, and younger players spent less this quarter. Executives remain optimistic, citing long‑term growth potential in the broader adult gaming market.

💡 Roblox is betting that a pivot to durable, creator‑driven experiences can revive revenue by tapping the $200 billion adult gaming segment, rather than relying on fleeting teen‑focused cash grabs.

fortune.com · Aug 5

A deal with Iran on the Strait of Hormuz—with a truckload of…

SpaceX reported second‑quarter results in its first post‑IPO earnings call, sending the stock on a volatile swing. Shares rose 9.43% before market close but fell 10.8% after the call as investors digested an $18.4 billion capital‑expenditure plan, far above the $13.2 billion analysts had forecast. Revenue nearly doubled year‑over‑year to $7.8 billion, beating the $6.9 billion consensus, while net loss narrowed to $541 million, roughly half the prior year’s deficit. CEO Elon Musk projected an accelerated path to $1 trillion annual revenue, moving the target from 2031 to 2030 and suggesting a “non‑zero chance” of reaching it by 2029. He also outlined an ambitious moon‑robot manufacturing program and a solar‑powered mass accelerator, describing the vision as “totally nuts” but inevitable for the company's long‑term strategic growth.

💡 The clash between soaring revenue and unprecedented spending reveals SpaceX’s high‑stakes gamble on future‑defining technologies, forcing investors to rethink traditional aerospace valuation metrics.

thestar.com.my · Aug 5

SpaceX slides as AI spending worries overshadow early returns

SpaceX shares plunged approximately 12% on Wednesday, falling below their $135 IPO price less than two months after the company’s public debut. Despite reporting AI revenue that more than tripled year-over-year and securing new cloud computing agreements, investors remained wary of the firm’s heavy capital expenditure. Quarterly spending on AI infrastructure reached $15.8 billion, contributing to total capital expenditures of $18.4 billion. Chief Financial Officer Bret Johnsen highlighted rapid economic improvements, noting a payback period of less than one year for new compute investments. However, analysts expressed concern that the profitable Starlink business may struggle to sustain such costly expansion indefinitely. With the lock-up expiration approaching, market participants anticipate significant volatility as they reassess SpaceX’s valuation and cash-burn trajectory against its aggressive growth targets.

💡 The stock’s sharp decline exposes a critical tension between rapid technological scaling and immediate financial sustainability in the AI sector. Investors are demanding proven, short-term returns on massive infrastructure bets rather than accepting long-term promises of future profitability.

teslarati.com · Aug 5

SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles

Venture capitalist Chamath Palihapitiya warned investors against shorting SpaceX, citing Tesla’s early short‑seller failures. SpaceX’s IPO on June 12, 2026, set a record at $135 per share, with a rapid peak of $225.64 and a subsequent 50% decline to around $108–$125. By late July, short interest hit 219.3 million shares—34% of the float—raising concerns ahead of earnings and an August 6 lock‑up expiration. Musk echoed warnings, while SpaceX posted Q2 revenue of $7.8 billion, beating estimates.

💡 The surge in short interest signals heightened market volatility and investor skepticism about SpaceX’s valuation trajectory. The company’s aggressive growth targets and AI investments could reshape the aerospace and tech sectors, making the outcome of this short‑selling battle pivotal for future capital allocation.

riotimesonline.com · Aug 5

Lithium Triangle Rally Gains on EV Demand Rebound

The Global X Lithium & Battery Tech ETF (LIT) surged 3.28% to $71.69, reflecting a rally in lithium equities driven by electric‑vehicle (EV) demand. Albemarle rose 1.78% to $120.82, buoyed by confidence in its Atacama brine operations, while SQM climbed 2.31% to $68.58 after clarifying its 2060 contract with Codelco. Arcadium Lithium, the Livent‑Allkem merger, edged up 1.06% to $5.74 amid concerns over Argentine currency and permitting. IEA data showed EVs accounted for about one‑fifth of new car sales in 2023, sustaining lithium’s centrality in battery chemistry.

💡 The rally underscores how long‑term policy certainty in Chile and steady EV adoption rates are reshaping lithium valuations, moving beyond short‑term spot price swings.

bmmagazine.co.uk · Aug 5

Amazon tops $3trn as AWS sales grow 36.7 per cent

Amazon’s market capitalization surpassed $3 trillion on Monday, becoming the fifth company to achieve this milestone after Apple, Microsoft, Nvidia, and Alphabet. The surge followed second-quarter earnings revealing that Amazon Web Services (AWS) grew net sales by 36.7 percent to $42.2 billion, marking its fastest expansion in over four years. Group net sales rose 20 percent to $200.6 billion, while operating income increased 43 percent to $27.5 billion. Shares closed at a record high of $284.02, up 5 percent for the day and 23 percent year-to-date. CEO Andy Jassy highlighted booming AI and chip businesses, each exceeding $25 billion in run rates. Amazon also raised its 2026 capital spending forecast to approximately $220 billion. The rally reflects strong investor confidence in the company’s cloud infrastructure and artificial intelligence capabilities, with AWS securing major contracts, including a $38 billion deal with OpenAI.

💡 Amazon’s performance dispels fears that hyperscalers are reducing AI infrastructure spending, validating the sector's continued growth trajectory. This confidence stabilizes broader market sentiment by confirming that major tech firms remain committed to heavy capital investment in artificial intelligence.