Shares of Advanced Micro Devices (NASDAQ: AMD) climbed over 2.6% on Monday as investors rallied around its growing artificial intelligence (AI) chip momentum and anticipation for its upcoming earnings report. Meanwhile, Intel (NASDAQ: INTC) tumbled more than 8%, reflecting mounting investor concern over market share losses and strategic uncertainty.
AMD surges on AI momentum and strong earnings setup
AMD’s gains come as the company prepares to report Q2 2025 earnings on August 5. Wall Street expects $7.41 billion in revenue—up 27% year over year—driven by strong demand for its latest MI355X GPUs, which are now shipping to major AI players including Oracle, Tesla, OpenAI, and Cohere.
- MI355X: 7x faster than its predecessor, based on AMD’s CDNA 4 architecture
- 130,000 units reportedly ordered by Oracle
- MI400 series: Launching in 2026, aiming to challenge Nvidia’s top-tier chips with full-system rack-scale architecture
These developments could position AMD to gain ground in the $500 billion AI chip market, particularly in inference computing, where real-time AI applications are outpacing traditional model training.
CEO Lisa Su has emphasized that the MI400 line isn’t just about chips—it’s about offering cost- and power-efficient alternatives to Nvidia’s offerings through a full-stack platform.
Intel stumbles on execution, drags on earnings optimism
In contrast, Intel reported Q2 results that beat revenue estimates but missed on earnings due to restructuring charges. Shares dropped more than 8% by Friday morning, following a 3.6% slide the day before. Analysts are raising red flags over Intel’s continued cash burn and foundry struggles, particularly its decision to pause next-gen 14A node development unless it secures a major external customer.
“In the meantime, Intel will continue to burn cash and concede more market share to AMD,” wrote J.P. Morgan analysts Harlan Sur and Peter Peng.
With gross margins falling below 40%, and client/server segments underperforming, Intel’s position as a top semiconductor player appears increasingly fragile.
Valuation snapshot: AMD vs. Intel
AMD’s valuation reflects high expectations, with a forward P/E of 40.11 and PEG ratio of 1.32. While the stock trades at a premium, the company’s five-year EPS growth forecast of 58.74% suggests the valuation may be justified—if AI adoption accelerates.
- AMD Gross Margin: 53.58%
- Nvidia P/E: 53.7 (for comparison)
- Intel Gross Margin: Sub-40%, trending downward
- AMD Price Target: $145.90 (12.4% downside from current level of ~$166)
While Nvidia continues to dominate with over 90% AI chip market share, AMD’s progress is being closely watched. Analysts believe its MI355X and upcoming MI400 lines could help it carve out meaningful market share by 2028.
What to watch on August 5
AMD’s Q2 earnings call will be a pivotal moment. Investors are looking for:
- Confirmation of strong MI355X adoption
- Clarity on MI400 timeline
- Guidance on China chip shipments amid export restrictions
- Updates on client and gaming segment recovery
A strong beat with bullish guidance could propel AMD stock into a parabolic breakout, especially as Intel and other legacy players falter.
Key takeaways:
- AMD stock climbs as anticipation builds for its August 5 earnings and AI progress
- MI355X GPU adoption by major AI firms signals growing confidence in AMD’s platform
- Intel struggles with execution, restructuring, and strategic shifts, losing share to AMD
- Valuation risks remain, but long-term prospects are strong for investors with a 5–7 year horizon