AMD drops after strong forecast falls short of lofty expectations

** Shares of AMD AMD.O fall 7.2% to $481.23 premarket

** Co sees Q3 revenue of about $13 billion, plus or minus $300 million vs analysts' estimate $12.52 billion, failing to meet lofty investor expectations, after a massive AI-fueled rally this year

** Q2 revenue jumps 50% to $11.54 billion, beating estimate of $11.28 billion ** "AMD's results and outlook were both ahead of consensus but appear to have fallen shy of elevated expectations post Intel's strong Q2 print," says analysts at RBC Capital Markets

** AMD recently traded at 43 times expected earnings, well above its five-year avg of 31, suggesting shares may be overvalued, per LSEG-compiled data

** AMD up 142% YTD, significantly outperforming a 14.4% rise in the Nasdaq .IXIC