Will AMD Stock Climb on Strong Data Center Revenues in Q2 Earnings?

Advanced Micro Devices AMD is expected to have benefited from strong Data Center revenues in the second quarter of 2025. The company’s second-quarter results are expected to be released on Aug. 5.AMD benefits from a robust product portfolio and an expanding partner base. The company continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs.The demand for AI accelerators like the Instinct MI300 series, especially from hyperscalers, is expected to continue growing, further boosting data center revenues in the second quarter of 2025. In the Data Center AI business, MI300X deployment increased with cloud partners, including Meta Platforms, Microsoft, IBM, Digital Ocean, and Dell Technologies, among others.AMD expects the Data Center segment’s revenues to significantly increase, driven by the strong sales of its data center chips that support hyperscalers and power AI and Generative AI applications. The Zacks Consensus Estimate for second-quarter Data Center revenues is pegged at $3.31 billion, indicating an impressive year-over-year increase of 16.7%.Advanced Micro Devices, Inc. Revenue (TTM) Advanced Micro Devices, Inc. revenue-ttm | Advanced Micro Devices, Inc. QuoteClick here to know how AMD’s overall second-quarter performance is likely to be.AMD to Benefit From the Client & Gaming Segment in Q2AMD’s expanding portfolio and rich partner base have been key catalysts in driving revenue growth in the client segment. The company is likely to see continued growth in its client business, driven by higher demand for AMD Ryzen processors across desktop and mobile platforms.The Zacks Consensus Estimate for the second-quarter Client segment revenues is pegged at $2.52 billion, indicating year-over-year growth of 69.3%.AMD expects a double-digit percentage increase in revenues for the client and gaming segment in the to-be-reported quarter. This growth is driven by strong desktop performance, continued demand for gaming products, and the beginning of the commercial ramp, particularly in the notebook and commercial PC markets.AMD’s Embedded Segment to Remain Flat Y/YAMD’s Embedded segment is expected to have suffered from ongoing softness in the industrial market. On a year-over-year basis, this segment’s revenues are expected to remain flat in the to-be-reported quarter. The Zacks Consensus Estimate for second-quarter Embedded revenues is pegged at $818 million, indicating a 4.9% year-over-year decline.What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.Advanced Micro Devices currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat earnings in their upcoming releases:Arista Networks ANET currently has an Earnings ESP of +0.96% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.ANET shares have returned 6.3% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 5.Bumble BMBL currently has an Earnings ESP of +37.01% and carries a Zacks Rank #1.BMBL shares have lost 6.8% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 6.Yum Brands YUM currently has an Earnings ESP of +1.34% and carries a Zacks Rank #2.YUM shares have gained 8.3% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 5.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Bumble Inc. (BMBL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks