What To Expect from AMD Q2 Earnings?

Advanced Micro Devices AMD reports second-quarter earnings after the market close on August 5. Street forecasts EPS of $0.48 on revenue of $7.4 billion, reflecting 27% year-over-year revenue growth but a 30% decline in EPS. Shares closed at $171.70 on August 1, up 40% year-to-date and more than 120% above the April low of $76.48, driven by optimism around MI300 adoption and hyperscaler demand for AI compute.

But two new developments add uncertainty. First, President Trump's late-July decision to impose 20% reciprocal tariffs on Taiwanese imports (down from an earlier proposed 32%) could raise AMD's cost of goods, given its reliance on Taiwan Semiconductor TSM for fabrication. Management commentary on mitigation strategies, whether via cost pass-throughs, supply chain localization, or margin concessions, will be critical. Conversely, the administration's lifting of the AI chip export ban to China reopens the door for MI308 shipments, pending license approval.

While hyperscalers have confirmed elevated AI CapEx, investors will focus on how much of that spending AMD is actually capturing through MI300/MI350 volume, new design wins, and high-margin AI revenue mix. With shares trading at 44 forward earnings, upside will likely hinge on management delivering clear AI traction, gross margin recovery, and a confident Q3 outlook.