Advanced Micro Devices NASDAQ:AMD is set to report second-quarter results after Tuesday's market close, with investors watching whether demand for its data-center chips can support further gains against Nvidia.
Wall Street expects AMD to report adjusted earnings of $1.61 per share on revenue of $11.31 billion. The company has exceeded revenue estimates in each of its past eight quarters and topped earnings expectations in seven.
AMD posted adjusted earnings of $1.37 per share in its latest quarter, above the $1.29 consensus estimate. Revenue rose 37.8% year over year to $10.25 billion, also topping forecasts. For the second quarter, AMD expects revenue of about $11.2 billion, plus or minus $300 million, with a non-GAAP gross margin near 56%.
AMD has also expanded its AI hardware lineup. At its July Advancing AI event, the company introduced Instinct MI400-series accelerators and the Helios rack-scale platform, which combines GPUs and EPYC processors for AI workloads.
AMD shares have gained more than 12% recently following strong Microsoft Azure results. Goldman Sachs and KeyBanc have also raised their price targets, citing AI server demand and hyperscaler spending.