AMD Stock Set to Report Q2 Earnings Amid Divided Analyst Opinions

Advanced Micro Devices (AMD) is set to report Q2 earnings on August 5, with the stock up 46% this year. Analysts are divided on the near-term upside, with some seeing strong AI-driven growth ahead while others remain cautious due to high valuations and execution risks. The company is expected to report Q2 revenue of $7.41 billion, a 27% YoY growth, and analysts will watch for signs of solid execution on production, customer uptake, and profits from its AI business.

Advanced Micro Devices (AMD) is set to report its second-quarter (Q2) earnings on August 5, following a strong year-to-date performance. The stock has surged 46% this year, driven by optimism around its AI and data center markets. Analysts are divided on the near-term upside, with some projecting robust AI-driven growth and others expressing caution due to high valuations and execution risks.

Q2 Revenue Projections

Analysts expect AMD to report Q2 revenue of $7.41 billion, representing a 27% year-over-year (YoY) increase [1]. This growth is primarily driven by the data center segment, which is projected to reach $3.31 billion, a 16.8% YoY increase. The gaming segment is also expected to show strong growth, with revenues reaching $750.40 million, a 15.8% YoY increase [1].

AI Chip Pricing and Demand

A notable development is AMD's potential price increase for its Instinct MI350 AI accelerator from $15,000 to $25,000, indicating growing demand for its AI products [4]. This move could significantly boost AMD's future revenue, as the company sees demand for its AI solutions.

Analyst Ratings and Price Targets

Analysts are mixed in their assessments of AMD's stock. UBS has raised its 12-month price target to $210 from $150, maintaining a "Buy" rating, while HSBC has upgraded AMD to "Buy" with a $200 price target [2]. However, Goldman Sachs initiated coverage with a "Neutral" rating and a $140 price target, citing execution risks and competitive challenges [2]. Overall, out of 44 analysts covering AMD, 28 recommend a "Strong Buy," two give a "Moderate Buy," 13 analysts stay cautious with a "Hold" rating, and one analyst gives a "Strong Sell" rating [2].

Q2 Earnings Expectations

Analysts predict AMD's earnings per share (EPS) to rise by 18% YoY to $3.09 in fiscal 2025, before improving by around 57% annually to reach $4.86 in fiscal 2026 [2]. The company expects Q2 revenue of $7.4 billion, plus or minus $300 million [2].

Conclusion

Investors will closely watch AMD's Q2 earnings for signs of solid execution on production, customer uptake, and profits from its AI business. Despite mixed analyst ratings, AMD's strong performance in AI and data center markets has driven significant stock price appreciation. The company's ability to maintain its momentum and navigate competitive challenges will be key to its future success.

References

[1] https://finance.yahoo.com/news/countdown-advanced-micro-amd-q2-131506584.html

[2] https://finance.yahoo.com/news/amd-stock-hit-210-2025-131824088.html

[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXFA01BD:0-essential-utilities-q2-revenue-beats-expectations-raises-quarterly-dividend/

[4] https://finance.yahoo.com/news/analysts-reset-amd-stock-price-003700128.html