By Tae Kim
Advanced Micro Devices investors will focus on the chip maker's outlook when the company reports second-quarter earnings after the close Tuesday. The numbers may be robust.
The consensus among analysts is for AMD to report June quarter revenue of $7.42 billion with adjusted earnings per share of 48 cents. For the current quarter, analysts estimate revenue of $8.32 billion and earnings per share of $1.15, according to FactSet.
Last week, Susquehanna analyst Christopher Rolland reaffirmed his Positive rating on AMD and increased his price target to $210 from $135.
"We expect generally in-line to slightly better results due to PC pull-ins/strong server sales and a better 2H [second half]," he wrote. "AMD is seeing strong enterprise adoption."
The analyst said AMD is gaining market share against Intel in the PC server processor market. The company has also been able to raise average selling prices for high-end desktop processors and laptop processors on the strength of its product lineup.
In June, AMD announced its latest AI chips to compete with Nvidia: the AMD Instinct MI350 series consisting of the MI350X and MI355X.
The AI data-center market has been moving toward "full stack" rack-scale solutions. In March, AMD closed its acquisition of ZT Systems, giving the company expertise to design rack-scale AI servers incorporating chips, networking, and software in a larger end-to-end system offering in the future.
"MI400 remains on track to launch in 2026 and notably will enable Helios (rack-scale solutions)," Rolland wrote.
AMD shares are up 47% this year, compared with the 12% gain for the iShares Semiconductor ETF.
Write to Tae Kim at tae.kim@barrons.com
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August 05, 2025 00:30 ET (04:30 GMT)
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