AMD braces for Q2 results as AI-driven chip rally cools

AMD is set to report its Q2 earnings after the bell as chip stocks remain choppy after a brisk AI-driven rally. Analysts expect EPS of $1.62 on revenue of about $11.3 billion, with data-center sales seen to grow over 100% to roughly $6.5 billion, client revenue around $3 billion, and gaming about $781 million (down ~30%). AMD recently unveiled the Helios rack-scale AI data-center system (72 MI455X GPUs plus Instinct CPUs) to compete with Nvidia, which currently dominates AI chips with up to ~90% market share. The PC market softness due to memory price pressures also weighs on the sector, even as AMD has surged about 194% over the last year.