Advanced Micro Devices (AMD, Financials), the semiconductor company behind EPYC server processors and Ryzen PC chips, could be headed for another strong quarter as demand for AI infrastructure continues to build.
In a new research note, Bank of America said it expects AMD to deliver a "beat and raise" quarter, pointing to exceptional demand for its EPYC server processors. The firm believes AMD is continuing to win market share in the data center market as cloud providers and enterprise customers expand AI infrastructure.
The optimism comes as spending on AI servers remains one of the strongest areas in the semiconductor industry. AMD has steadily strengthened its position against rival Intel by offering higher-performance server chips, while also expanding its portfolio of AI accelerators.
Bank of America believes those trends should support another solid set of quarterly results and an improved outlook for the rest of the year. The firm expects continued momentum from large cloud customers as well as broader enterprise adoption of AI workloads.
AMD has been one of the biggest beneficiaries of the industry's AI investment cycle, and investors are looking for signs that demand remains strong despite concerns about rising competition.
The company's upcoming earnings report will provide a closer look at server chip demand, AI revenue growth and whether management sees the current momentum continuing through the second half of the year.