Will AMD Rise On Approaching Earnings?

Group 1 - Advanced Micro Devices (AMD) is set to announce earnings on August 5, 2025, with consensus forecasts predicting earnings of approximately $0.49 per share and revenues of around $7.42 billion, reflecting a 27% increase [2] - The revenue growth is expected to be driven by higher sales in both client and data center segments, although the gaming sector may face some challenges [2] - AMD's Data Center revenue surged 57% year-over-year, supported by strong demand for its EPYC CPUs and Instinct GPUs, indicating a significant opportunity for market share enhancement as AI adoption increases [3][4] Group 2 - AMD's GPUs are considered more cost-effective for inference tasks compared to Nvidia's offerings, which may provide a competitive advantage as workloads shift from training to inference [4] - The upcoming release of AMD's next-generation AI chip, the MI350, is anticipated to deliver up to 4x the AI computing performance of its predecessor, further positioning AMD in the AI market [4] - AMD's market capitalization stands at $257 billion, with a revenue of $28 billion over the past twelve months, operational profits of $2.9 billion, and a net income of $2.2 billion [4] Group 3 - Historical data shows that AMD has had 20 earnings data points over the last five years, with positive one-day returns occurring about 40% of the time, which declines to 33% over the last three years [6] - The median of the positive one-day returns is 8.3%, while the median of the negative returns is -5.1%, indicating a mixed performance post-earnings [6] - Correlation analysis between one-day, five-day, and twenty-one-day returns post-earnings can provide insights for traders looking to position themselves effectively [7][8]