AMD to report Q2 earnings as chip stocks continue to waver

3 weeks ago 10

AMD (AMD) volition study its 2nd 4th net aft the doorbell connected Tuesday arsenic investors proceed to navigate the choppiness crossed spot stocks.

After a monolithic run-up crossed the assemblage that saw the Philadelphia Semiconductor scale (^SOX) leap much than 100% implicit the past year, spot stocks person paused since astir mid-June, with the radical dropping 20% arsenic of midday Friday, according to AlphaSpace data.

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At close: July 31 astatine 5:15:59 PM EDT

AMD banal has climbed an awesome 194% successful the past 12 months, acknowledgment to the emergence of AI agents. AI agents trust connected cardinal processing units (CPUs) to execute tasks for users, specified arsenic preparing spreadsheets oregon sending emails.

That's made CPUs, similar the ones AMD produces, acold much important to hyperscalers similar Microsoft (MSFT) and different AI unreality companies.

That, however, has besides helped AMD rival Intel (INTC), which is up much than 340% successful the aforesaid timeframe.

But AMD has a instrumentality up its sleeve that Intel doesn't.

Late past month, the institution launched its Helios rackscale level for AI information centers. The system, which features 72 AMD MI455X graphics processing units (GPUs), arsenic good arsenic respective of the company's Instinct CPUs, is designed to spell toe-to-toe with Nvidia's (NVDA) ain Blackwell and Rubin-based NVL72 rack-scale systems.

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At close: July 31 astatine 4:00:01 PM EDT

AMD INTC NVDA

CEO Lisa Su isn't shy astir taking connected Nvidia either. The 2 companies person competed successful the gaming graphics paper abstraction for years.

According to Su, the Helios rack provides 15% amended compute show than Vera Rubin and offers 50% much high-bandwidth representation capacity. Helios, she added, besides provides 30% much tokens per dollar than Nvidia's servers.

Nvidia dominates the AI spot space, accounting for arsenic overmuch arsenic 90% of marketplace stock successful immoderate fixed quarter. But adjacent a tiny portion of that would beryllium a boon for AMD.

For the quarter, AMD is expected to study net per stock of $1.62 connected gross of $11.3 billion, according to Bloomberg analysts' statement estimates. The institution saw EPS of $0.48 and gross of $7.6 cardinal successful the aforesaid 4th past year.

Data halfway maturation is expected to apical 100%, climbing to $6.5 billion, versus $3.2 cardinal successful Q2 2025. AMD's lawsuit conception is expected to make $3 cardinal successful sales, up 20%, portion its gaming part is acceptable to bring successful $781 million, down 30%.

The PC manufacture is facing a downturn arsenic a effect of accrued representation prices, which could interaction AMD and Intel's PC chips businesses successful the coming months.