AMD earnings expectations

PARAGRAPH 1 --- Advanced Micro Devices (AMD) is set to report second-quarter earnings on August 4, with revenue expected near $11.2 billion, a 46% year-over-year growth. The data center segment, now over half the business, grew 57% in the previous quarter. AMD's stock, trading at $521.95, is priced at 170 times earnings and 59 times forward earnings, with analysts' average price target at $570.60, implying 9% upside.

PARAGRAPH 2 --- AMD's earnings are a critical test for chip stocks and momentum stocks. Historically, AMD shares experience significant post-earnings volatility, averaging a 16.5% move. The options market reflects this, with a divergence between positive earnings expectations and negative price action. The semiconductor sector and AMD's competitors, such as Nvidia, could be affected by AMD's earnings, as they operate in the same supply chain and cater to similar markets.

PARAGRAPH 3 --- To watch next, AMD's earnings report on August 4 will reveal whether the company can meet or beat revenue guidance. Additionally, investors will focus on the earnings call for forward guidance, particularly on the data center segment's growth trajectory. Lastly, AMD's stock price reaction post-earnings will indicate whether the market views the results favorably or if there's a significant repricing.