UPDATE—July 29, 2024: This article has been updated to reflect more recent analyst estimates and share price information.

Advanced Micro Devices (AMD) is set to report second-quarter earnings after the bell Tuesday, with investors likely watching for record data center growth and strong guidance amid the 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) boom.

The chipmaker is projected to report revenue of $5.74 billion, according to estimates compiled by Visible Alpha, which would represent 7% growth from the year-ago period. Net income is expected to come in at $343.08 million, or 21 cents per share, an increase from the second quarter of 2023.

Key Metric: Data Center Growth

AMD will report revenue for its data 🌠center segment, with investors watching for continued growth on AI demand.

In the 澳洲幸运5官方开奖结果体彩网:first quarter, AMD's data center business reached a record-high revenue of $2.3 billion, up 80% from the year-ago period, driven by sales of 澳洲幸运5官方开奖结果体彩网:MI300 chips used for AI data centers.

Analysts expect data center revenue to be $2.79 billion, according to consensus estimates from Visible Alpha, which would be a quarterly record high for the segment.

Business Spotlight: Outlook and Investor Sentimen🔯t Amid AI Boom

AMD will provide its expectations for revenue for the third quarter, with investors likely watching closely as sentiment surrounding the stock ဣhas been less favorable than for many of its AI chipmake♎r peers.

Investors consider Nvidia (NVDA) and Broadcom (AVGO) as favorite stocks within the semiconductor industry, while AMD was among the "most unpopular," 澳洲幸运5官方开奖结果体彩网:according to Citi analysts who recently meജt with investors to gauge their views on chipma൩ker stocks.

AMD's third-quarter revenue forecast is expected to be $6.66 billion, according to consensus estimates compiled by Visible Alpha. If AMD's outlook were to surpass estimates, it could act as a positive catalyst for the stock.

Goldman Sachs analysts anticipate AMD will provide third-quarter guidance in line with consensus estimates. The analysts said they expe🌌ct the chipmaker to update its data center GPU revenue forecast to $4.5 billion from $4 billion, which could also improve inves♏tor sentiment.

Shares of AMD have lost about 5% of their value so far this year, at $139.75 as of Monday's close.