AMD's July 22 AI event may bring raised guidance, new clients
Advanced Micro Devices is expected to outline a larger market opportunity and announce major new customers at its upcoming AI event, potentially reversing a recent pullback in its share price.
Advanced Micro Devices (AMD) will host its "Advancing AI" event in San Francisco on July 22, where analysts anticipate the chipmaker will pre-announce strong second-quarter results and secure new major customers. The event arrives as AMD's stock has retreated from recent highs, leaving investors looking for a catalyst to justify current valuations.
Expectations for the presentation center on an upward revision to the company's financial forecasts. Bank of America analyst Vivek Arya said he anticipates a "beat-and-raise" quarter for AMD. He attributed this outlook to "exceptional" demand for server processors and ongoing market share gains in central processing units (CPUs).
Beyond the near-term second-quarter results, which are officially scheduled for early August, AMD may significantly expand its long-term market opportunity. Jefferies analyst Blayne Curtis suggested the company could align its data center CPU projections with Nvidia's, targeting a $200 billion total addressable market (TAM). That would represent a substantial increase from AMD's previous $120 billion TAM estimate, signaling stronger confidence in future revenue.
New customer acquisitions are also on the agenda. Anthropic is widely expected to be named as a new GPU customer, following reports that the AI firm is hiring engineers skilled in AMD's ROCm software platform. Market participants will be watching the structure of any Anthropic deal to see if it mirrors the large equity stakes previously granted to OpenAI and Meta Platforms, or if it marks a shift to conventional commercial terms.
Curtis further noted the potential for Microsoft to be announced as a GPU customer during the presentation. In addition to these client wins, AMD is slated to provide updates on its future CPU and GPU roadmaps. These technology milestones remain critical for the company as it attempts to close the gap with market leaders in AI computing.
AMD is positioning its hardware to capitalize on two specific areas of AI infrastructure: inference and agentic AI. Analysts project this focus could drive explosive growth for the company's GPU and CPU divisions over the next several years.
If AMD successfully articulates a larger data center TAM and secures key customers next week, it would reinforce its position as a viable alternative supplier in a hardware sector currently dominated by a single rival.
