AMD Q2 Earnings Preview: Revenue Expected to Rise 27%, EPS Seen Down 30%

AMD is set to report Q2 earnings on Tuesday, after markets close. Analysts expect EPS of $0.48, a 30% fall, and revenue of $7.43 billion, a 27% increase. The chipmaker's results will be closely watched as the company continues to navigate the competitive semiconductor market.

Advanced Micro Devices (AMD) will release its Q2 earnings report on Tuesday, August 5, after the market hours. Analysts are expecting the chipmaker to report EPS of $0.48 per share, marking a 30% decrease from the previous quarter [1]. Revenue is anticipated to reach $7.43 billion, a 27% increase year-over-year [1].

AMD has consistently exceeded analysts' expectations over the past two years, with an average beat of 1.5% [1]. The company's Q2 results will be closely watched as it navigates the competitive semiconductor market. AMD's peers in the processors and graphics chips segment have shown mixed performance, with Qorvo and Penguin Solutions reporting revenues that fell short of expectations [1].

AMD's strong performance is driven by robust demand for AI accelerators and favorable market conditions. The company's MI355X GPU is reported to deliver over 7X the compute power of its previous high-powered AI chip, the MI355X [2]. Additionally, AMD's data center revenue surged by 57% in Q1, thanks to strong demand for CPUs and GPUs [2].

Despite the expected EPS decline, AMD is projected to post double-digit top and bottom line growth in fiscal 2025 and FY26 [2]. The company's stock has been performing well, with a 45% year-to-date increase, outpacing the S&P 500 and Nasdaq's returns [2]. However, the stock trades at a premium valuation, with a forward P/E ratio of 44X, compared to the S&P 500's 23.3X [2].

Investors will be closely monitoring AMD's Q2 report and guidance to gauge the company's ability to sustain its growth trajectory. The chipmaker's results will provide insights into its competitive positioning and the potential impact of margin pressures and R&D spending on its bottom line [2].

References:
[1] https://finance.yahoo.com/news/amd-q2-earnings-report-031858481.html
[2] https://www.nasdaq.com/articles/buy-amd-stock-new-peaks-q2-earnings-approach