CTRL+ALT+AI: AMD and Arm Reboot Market Expectations
Chip Wars, AI Ambitions, and Tariff Tensions—AMD and Arm Set the Stage for Nvidia’s Big Reveal

As Wall Street braces for Nvidia’s highly anticipated earnings later this month, two other major chipmakers—Advanced Micro Devices (AMD) and Arm Holdings—are stepping into the spotlight first, offering a revealing preview of how the broader AI hardware market is holding up. The results from these two firms may not only shape investor sentiment in the near term, but also serve as a barometer for just how strong the foundation is beneath the ongoing AI trade frenzy.
Despite the Philadelphia Semiconductor Index being down 14% year-to-date, the enthusiasm for artificial intelligence hasn’t exactly fizzled. Underneath the surface of recent market jitters lies a torrent of continued capital investment from tech giants like Meta, Alphabet, and Microsoft. These behemoths have made it clear: they’re not hitting pause on AI spending—in fact, they’re doubling down. With that in mind, earnings reports from AMD and Arm are more than just quarterly check-ins; they’re a litmus test for AI's staying power in today’s economy.
AMD is scheduled to report its results after Tuesday’s market close, while Arm will follow up after Wednesday’s trading session. Both are expected to post strong top-line growth. Analysts forecast AMD will report $7.1 billion in revenue—a robust 30% year-over-year increase. Arm is expected to deliver $1.23 billion in revenue, marking a 33% rise over the same period. These projections are not just impressive on paper—they reflect an accelerating hunger for the chips powering today’s AI infrastructure, from cloud data centers to edge devices.
But stock prices are telling a more complicated story. On Tuesday morning, AMD shares slid as much as 2.7%, while Arm’s fell over 3%. That divergence between stock performance and underlying revenue growth speaks volumes about market uncertainty. Investors, already skittish from macroeconomic volatility and geopolitical risks, are looking for more than revenue beats—they want clarity on guidance, profitability, and exposure to potential regulatory shocks.
