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AMD Predictions: Here are the Anticipated Outcomes

Quarterly earnings announced by AMD reveal projected 27% rise in revenue and a potential 29% decline in profits

AMD: Anticipated Outcomes - These are the Predicted Scenarios
AMD: Anticipated Outcomes - These are the Predicted Scenarios

AMD Predictions: Here are the Anticipated Outcomes

In today's market update, AMD is set to reveal its second-quarter results after the close of US markets. These results are significant not only for AMD but also for the overall semiconductor industry and Nvidia shareholders.

The second-quarter results of AMD have been eagerly anticipated, and for good reason. The company reported a record revenue of $7.7 billion, a 32% increase year-over-year, and net income of $872 million. However, the company also faced an operating loss of $134 million due to an $800 million inventory and related charge from U.S. export control restrictions on their Instinct MI308 GPUs intended for China. Excluding these charges, non-GAAP gross margin would have been about 54%, highlighting strong underlying profitability[1][3][4].

Despite missing slightly on adjusted earnings per share (EPS), AMD beat revenue expectations, with a reported figure of $0.48 vs. $0.49 expected. AMD’s guidance for Q3 2025 remains optimistic, projecting revenues between $8.4 billion and $9 billion, exceeding analyst estimates and suggesting continued growth driven by AI and server processor demand[2][5].

For Nvidia shareholders, AMD's strong growth and competitive positioning have important implications. AMD, the second-largest U.S. chipmaker after Nvidia, is increasingly supplying AI customers like OpenAI and Meta with competitive alternatives to Nvidia’s GPUs. This intensifies rivalry in the AI accelerator segment, particularly as AMD ramps up its Instinct MI350 series and unveils new MI400 AI chips for 2026[2][5].

The export control dynamics affecting AMD may temporarily distort the competitive balance, but their recent easing could restore and boost AMD’s market share in this crucial region, potentially challenging Nvidia’s dominance further.

In summary, AMD’s Q2 results indicate robust growth, particularly in AI and data center sectors, but with near-term headwinds from export controls. AMD’s outlook for Q3 is strong, signaling continued revenue growth and margin expansion. Nvidia shareholders should note increased competitive pressure from AMD in AI chips as AMD gains market share and expands product pipelines. The export control dynamics affecting AMD may temporarily distort the competitive balance but could reverse, intensifying competition in China and globally.

These developments suggest Nvidia faces both growth opportunities in the expanding AI market and escalating competition from an increasingly formidable AMD[1][2][5]. DER AKTIONÄR is closely analyzing the market's expectations for AMD's second-quarter results and the potential impact on the shares of Nvidia. The results of AMD's second-quarter are indeed a barometer for sentiment in the semiconductor industry, and the market has certain expectations from these results. The second-quarter results of AMD may influence the sentiment of the semiconductor market, and they are likely to be closely watched by Nvidia shareholders.

The strong growth and competitive positioning of AMD in AI and server processor segments could have significant implications for Nvidia shareholders, as AMD provides alternatives to Nvidia’s GPUs for AI customers.

The second-quarter results of AMD have the potential to influence the sentiment of the semiconductor market and are likely to be closely watched by Nvidia shareholders, as they serve as a barometer for the semiconductor industry's sentiment.

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