Advanced Micro Devices Inc. (NASDAQ:AMD) reports second-quarter earnings on Tuesday, with investors looking for evidence that CEO Lisa Su‘s claim of a “structural shift” in the company’s business is beginning to translate into sustainable growth.
Hyperscaler AI Spending Will Be Front and Center
AMD entered the second quarter with a growing AI pipeline, anchored by Meta Platforms Inc.‘s (NASDAQ:META) 6-gigawatt deployment commitment, customer forecasts through 2027 running ahead of plan, and increasing deployments of its next-generation AI platforms.
The first-quarter update also marked a shift in how AMD described its business.
Rather than focusing on individual GPU wins, Su outlined a broader AI infrastructure strategy spanning Instinct accelerators, EPYC CPUs and rack-scale systems designed for hyperscale customers.
Since then, AMD has continued expanding its AI footprint, announcing a long-term infrastructure agreement with Core Scientific Inc. (NASDAQ:CORZ) to support large-scale AI deployments.
Big Tech’s AI Spending Has Only Intensified
The AI spending backdrop has only strengthened since AMD last reported.
Microsoft Corp. (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Google parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) continue to invest heavily in AI infrastructure, while cloud demand and AI-related workloads boost growth across the semiconductor supply chain.
That backdrop supports AMD’s push to become a broader AI infrastructure supplier, with hyperscalers investing not only in accelerators but also in the servers, CPUs and networking needed to power next-generation AI workloads.
AMD also heads into earnings as results continue to reinforce the AI investment cycle, with S&P 500 companies beating earnings estimates by an average of 27% this quarter.
Wall Street Expects Another Strong Quarter
Wall Street expects AMD to report second-quarter revenue of $11.28 billion and adjusted earnings of $1.55 per share, according to Benzinga Pro.
Investors are also expected to closely watch the data center business, which has become AMD’s primary growth engine.
The segment generated a record $5.8 billion in revenue in the first quarter, up 57% year over year.
A Polymarket contract assigns a 95% probability that AMD’s second-quarter data center revenue will exceed $6 billion, with traders also pricing in a 91% chance it tops $6.5 billion.
Price Action: AMD closed 1.90% lower on Friday at $476.15 and fell further 0.85% in extended trading.
Benzinga edge rankings indicate AMD has a Momentum score in the 98th percentile and a Growth score in the 97th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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