Nvidia Earnings Report May Shake Up Market Preference

Advanced Micro Devices (AMD) investors are bracing for news that may impact their stock's performance, but it has little to do with AMD itself. Nvidia (NVDA), a major competitor, is set to report its Q2 earnings on August 26, and the results could shift market preference from AMD to Nvidia.

In 2026, AMD outperformed Nvidia in terms of stock performance, rising about 120% compared to Nvidia's 16%. However, Nvidia has historically been a strong performer, and investors may be looking for a comeback. The data center division growth rate is a key metric to watch, with Nvidia's Q1 results showing a 92% increase.

AMD's Q2 results have shown impressive growth, but at 50%, it lags behind Nvidia's overall revenue rise of 85%. If Nvidia's data center division can maintain its pace, it could justify its recent outperformance and solidify its position in the market. This may lead to selling pressure on AMD's stock as investors shift their focus.