AMD Q2 Earnings Outlook: Analysts Expect Revenue Growth, EPS Decline, and AI Boost

AMD stock has rallied 38% YTD, driven by strong Q1 results, encouraging AI updates, and lifted chip export restrictions. Ahead of Q2 earnings on Aug 5, Wall Street is cautiously optimistic. Analysts expect EPS of $0.48 and revenue growth of 27% to $7.41 billion. Analysts are divided, with Erste Group upgrading AMD to Buy, while Citi maintains a Hold rating with a $165 price target.

Advanced Micro Devices (AMD) stock has been on a remarkable rally year-to-date, with a 38% increase driven by strong Q1 results, encouraging AI updates, and the lifting of chip export restrictions. Ahead of the company's Q2 earnings report scheduled for August 5, Wall Street analysts are cautiously optimistic, with expectations for earnings per share (EPS) of $0.48 and revenue growth of 27% to $7.41 billion [4].

Analysts are divided in their assessments of AMD's stock. While Erste Group has upgraded AMD to a "Buy" rating, Citi maintains a "Hold" rating with a $165 price target [1]. The divergent views reflect the mixed sentiment surrounding AMD's prospects, particularly in the face of intense competition in the AI and gaming sectors.

AMD's client and data center businesses have shown significant promise, with global PC shipments rising by 8.4% in the second quarter of 2025, driven by factors such as the end of support for Windows 10 PCs and strong demand from commercial customers [1]. AMD's share of the PC CPU market has also improved, with its market share in desktop PCs increasing by 4 percentage points year-over-year to 28% [1].

The company's data center business has benefited from robust demand for both its server CPUs and AI graphics processing units (GPUs). The recent relaxation of export restrictions by the U.S. has further bolstered AMD's position in the Chinese market, potentially leading to stronger-than-expected results [1].

However, AMD's gaming segment has lagged behind its AI-focused competitors, such as Nvidia. The company is intensifying its focus on the AI sector, as companies increase their capital investments related to AI data centers. In the latest quarter, AMD's Data Center revenue jumped 57% year-over-year, driven by robust demand for its EPYC CPUs and Instinct GPUs [4].

Analysts will be closely watching AMD's performance in the upcoming earnings report, particularly in the AI and gaming segments. The company's ability to maintain its momentum in these areas could significantly impact its stock price and overall market valuation.

References:
[1] https://finance.yahoo.com/news/1-no-brainer-artificial-intelligence-094500372.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TM1SR:0-buzz-nasdaq-top-and-bottom-performing-stocks-at-about-02-45-p-m-edt-on-2025-07-25/
[3] https://www.investing.com/news/earnings/analysts-downgrade-neste-says-stock-is-now-trading-above-intrinsic-value-4153247
[4] https://www.forbes.com/sites/greatspeculations/2025/07/25/will-amd-rise-on-approaching-earnings/