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Will AMD Stock Climb on Strong Data Center Revenues in Q2 Earnings?
AMDAMD(US:AMD) ZACKSยท2025-08-04 17:15

Group 1: Data Center Segment - Advanced Micro Devices (AMD) is expected to benefit from strong Data Center revenues in Q2 2025, with a projected revenue of $3.31 billion, reflecting a year-over-year increase of 16.7% [3][9] - The demand for AI accelerators, particularly the Instinct MI300 series, is anticipated to grow, further enhancing data center revenues, especially from major cloud partners like Meta Platforms, Microsoft, and IBM [2][9] - AMD's data center growth is driven by strong sales of chips that support hyperscalers and AI applications [3][9] Group 2: Client and Gaming Segment - AMD's Client segment is projected to generate revenues of $2.52 billion in Q2 2025, indicating a significant year-over-year growth of 69.3%, driven by higher demand for AMD Ryzen processors [4][9] - The company expects a double-digit percentage increase in revenues for the client and gaming segment, supported by strong desktop performance and demand for gaming products [5][9] Group 3: Embedded Segment - AMD's Embedded segment is expected to remain flat year-over-year, with revenues estimated at $818 million, indicating a decline of 4.9% due to ongoing softness in the industrial market [6][9]