Advanced Micro Devices (NASDAQ:AMD) is set to post second quarter results on Tuesday, after markets close.
Wall Street expects the chipmaker to post EPS of $0.48, implying a 30% fall, while revenue is expected to rise over 27% to $7.43 billion during the quarter.
AMD’s quarterly results and current quarter guidance in May impressed investors, even though the company said losses are expected to be around $1.5B in fiscal 2025 due to U.S. curbs on China.
However, the California-based company’s statement in July that it will resume shipments of its MI308 chips to China after receiving U.S. government approval boosted market confidence. Evercore said it expects a potential near-term revenue upside of $700M and a medium-term upside potential of $1.5B for the company.
Most analysts are bullish on the stock, with Seeking Alpha analysts and Wall Street rating it a Buy. In contrast, Seeking Alpha’s Quant rating considers it a Hold.
“We expect AMD should have at least met our CQ2 estimates, and possibly will exceed our outlook,” said Wedbush analyst Matt Bryson, adding that the brokerage sees continued share gains in compute as likely to benefit AMD through the remainder of 2025, though upside could be partially mitigated by softer market demand.
AMD is reportedly thinking of increasing the price of its Instinct MI350 AI accelerator to $25,000 from $15,000, suggesting demand for its AI products, as companies seek alternative to Nvidia’s chips.
The nearly 70% increase in average selling price is still cheaper than its counterpart product from tech giant Nvidia, the Blackwell B200.
Over the last two years, AMD has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time. Over the last three months, EPS estimates have seen six upward revisions, compared to 28 downward revisions. Revenue estimates have been revised upwards 20 times versus nine downward moves.
The stock has gained over 40% so far this year, outperforming the 6% rise in the broader S&P 500 Index.