AMD Stock Set to Fly Higher with Upcoming Earnings Report Amid AI-Fueled Growth

AMD's stock has surged 78% in the past three months and is set to gain further momentum after its Q2 2025 earnings report on Aug. 5. The company's strong performance is driven by growth in the PC and AI accelerator markets, with PC shipments rising 8.4% YoY in Q2 2025, and AMD's client and data center businesses expected to deliver better-than-expected results and guidance.

Advanced Micro Devices (AMD) has experienced a remarkable stock surge of 78% over the past three months, driven by the AI gold rush in the tech sector. The company's stock is expected to gain further momentum following its Q2 2025 earnings report, scheduled for August 5.

AMD's strong performance is primarily attributed to robust growth in the PC and AI accelerator markets. Counterpoint Research reports that global PC shipments rose by 8.4% year-over-year (YoY) in Q2 2025, the largest increase since 2022. This growth is driven by factors such as the end of support for Windows 10 PCs, leading to an upgrade cycle, and increasing demand from commercial customers and AI-enabled PCs. AMD's share of the PC CPU market has also seen significant gains, with desktop CPU share rising by 4 percentage points to 28% and laptop CPU share increasing by 3.2 percentage points to 22.5% [1].

In the data center segment, AMD registered a 57% revenue growth YoY in Q1, driven by strong demand for server CPUs and AI GPUs. The U.S. government's recent relaxation of export restraints has enabled AMD to ship its AI accelerators to China, a key growth market. This move is expected to significantly boost AMD's revenue and market share in enterprise and hyperscale data centers [1].

AMD's client and data center businesses are expected to deliver better-than-expected results and guidance for the Q2 2025 earnings report. The company has guided for $7.4 billion in Q2 revenue, representing a 26% year-over-year growth. Analysts expect a 19% year-over-year revenue increase in the current quarter, which could be outpaced by AMD's strong performance in the PC and data center markets [1].

Despite its recent stock rally, AMD continues to appear undervalued based on its long-term growth prospects. The company's price/earnings-to-growth ratio (PEG ratio) of 0.77 indicates that the stock is undervalued relative to its projected five-year average annual earnings growth rate [1].

In conclusion, AMD's strong performance in the PC and data center markets, coupled with its strategic advancements in processor technology, positions it as a compelling AI growth stock. Investors should closely monitor AMD's Q2 2025 earnings report for further insights into the company's potential for continued growth.

References:
[1] https://www.techi.com/amd-stock-surges-ai-momentum-ahead-q2-earnings/