Nvidia Earnings Report to Impact Investor Sentiment Towards AMD

Investors of Advanced Micro Devices (NASDAQ: AMD) have something to watch for on August 26, but it's not directly related to the company. On that day, Nvidia (NASDAQ: NVDA) is set to release its Q2 earnings report. The market's view of AMD could shift based on how strong Nvidia's results are.

Last year, AMD outperformed Nvidia by a significant margin, rising about 120% compared to Nvidia's 16%. This was largely due to the market's belief that AMD can take market share from Nvidia. However, if Nvidia's data center division grows at a faster clip than AMD's in Q2, it could justify Nvidia as the preferred stock.

Nvidia currently holds the faster growth rate, with overall revenue rising 85% compared to AMD's 50%. The competition between these two companies is intense, particularly in the data center infrastructure sector. AMD has been gaining ground, but if Nvidia can regain its lead, it could impact investor sentiment towards AMD.