Advanced Micro Devices (AMD) is set to release its second-quarter financial results on Tuesday after market close, offering investors an early look into the state of the artificial intelligence chip market ahead of rival Nvidia’s report later this month.
According to Bloomberg consensus estimates, analysts project AMD will report adjusted earnings per share (EPS) of $0.49 on revenue of $7.4 billion. While this would mark a 29% year-over-year decline in EPS, it represents a substantial 27% increase in revenue.
A key area of focus will be the company’s Data Center segment, which is expected to generate $3.2 billion, up 14% from the prior year. Growth is anticipated to be driven by strong demand for AMD’s latest generation servers and the recent launch of its MI350 line of AI accelerators. Designed to compete directly with Nvidia’s Blackwell architecture, AMD claims the MI350 series offers a 35-fold increase in inferencing performance over its predecessors.
“We expect AMD to post higher results and higher guidance, as we see improving traditional server demand and latest generation share gains, as well as strong demand for MI355,” wrote KeyBanc Capital Markets analyst John Vinh in a note to investors.
The Client business, which includes CPUs for desktops and laptops, is projected to see revenue surge 71% year-over-year to $2.5 billion. This significant increase is largely attributed to manufacturers building up inventory in advance of potential tariffs, a phenomenon known as “pull-in” demand.
However, analysts caution this boost may be temporary. “We expect AMD Client to benefit from tariff-related pull-in of demand in Q2, and that same benefit to likely reverse in 2H,” noted BofA Global Research analyst Vivek Arya, suggesting a potential for below-seasonal performance in the third and fourth quarters.
The report will also reflect the impact of a now-reversed U.S. government ban on sales of certain AI chips to China. The policy reversal is expected to help AMD recover from a projected $700 million hit in the coming quarters.
Investors have shown strong confidence in AMD’s strategy, with the company’s stock rising more than 1% in pre-market trading Tuesday. Year-to-date, AMD shares have climbed 47% and are up 34% over the last 12 months.
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