The stock was falling 4.9% to $32.22 in after-hours trading Tuesday, after having risen 1.2% in the regular session.
Earnings per share came in at an adjusted 8 cents for the second quarter, in line with Wall Street's estimate of 8 cents. A year earlier, second-quarter EPS was 14 cents.
Revenue was $1.53 billion, a 13% decrease from $1.76 billion a year earlier and ahead of analysts' expectations of $1.52 billion.
Computing and graphics revenue came in at $940 million, missing expectations of $983 million. Enterprise embedded and semi-custom revenue was $591 million, beating estimates of $544 million.
"I am pleased with our financial performance and execution in the quarter as we ramped production of three leadership 7nm product families," said Dr. Lisa Su, AMD president and CEO.
"We have reached a significant inflection point for the company as our new Ryzen, Radeon and EPYC processors form the most competitive product portfolio in our history and are well positioned to drive significant growth in the second half of the year."
AMD's third-quarter 2019 revenue guidance is $1.8 billion, plus or minus $50 million. That's below analysts' estimates of $1.94 billion.
Management expects full year 2019 sales growth in the mid-single digits percent, "driven by significant sales growth" of the Ryzen, EPYC and Radeon processors, offset partly by lower-than-expected semi-custom revenue.
Analysts were looking for full year 2019 revenue growth of 6.1% to $6.87 billion, according to FactSet.
Through Monday AMD stock was up more than 80%.