AMD Rally Faces Test as Quarterly Results Put AI Progress Under Scrutiny
Advanced Micro Devices is set to report second-quarter results after Tuesday’s close, with analysts expecting revenue to rise 27 percent from a year earlier to roughly $7.4 billion and adjusted earnings per share to fall 30 percent to $0.48. The figures will be parsed for evidence that the chipmaker is capitalising on the boom in artificial-intelligence computing. AMD shares have surged about 45–47 percent this year, eclipsing Nvidia’s 33 percent advance and making the company the best-performing name in the Philadelphia Semiconductor Index. The rally reflects investor bets that soaring capital expenditures on AI infrastructure—more than $340 billion collectively pledged by Meta Platforms, Microsoft, Amazon and Alphabet—will translate into stronger demand for AMD’s processors. The optimism faces a reality check. Nvidia still controls roughly 95 percent of revenue from AI graphics processors, leaving AMD with only 5 percent, according to Bloomberg Intelligence. Analysts say AMD must show progress in winning AI accelerator orders and sustaining market-share gains in central processors to justify its valuation, which now sits about 15 percent above the average price target and carries fewer buy ratings than its larger rival. A planned resumption of selected AI-chip shipments to China, cleared by U.S. regulators, could provide a near-term revenue lift, but most strategists argue that longer-term momentum hinges on AMD’s ability to broaden its AI portfolio in the face of entrenched competition from Nvidia.
Sources
- Markets News
AMD shares surged 47% in 2025, outperforming NVIDIA’s 33%, driven by increased AI-related capital expenditures. Q2 revenue is projected to rise 27% to $7.4 billion. Investors are focused on AI infrastructure gains to justify the rally, while China is set to resume AI chip sales.
- First Squawk
AMD Up 47% In 2025, Outperforming Nvidia’s 33%, As AI Capex Boom Lifts Demand; Q2 Rev Seen +27% To $7.4B; Investors Want AIInfra Gains To Justify Rally; China AIChip Sales Set To Resume
- SiliconBeat
AMD under pressure to show AI gains with stock beating Nvidia https://t.co/6NALIShYzV