Nvidia Stock May Rise After AMD Earnings on August 5

Earnings season is just like the Oscars for the financial world, but with fewer red carpets and anxious CFOs. For investors, it’s not just about who beat estimates or who missed by a penny, rather it’s a full-fledged market test. Though Nvidia isn’t reporting its quarterly earnings yet, AMD’s results next week on August 5 could stage Nvidia’s next performance.

 The two firms are not only competitors, they’re like co-stars in the AI-driven data center. Quarterly earnings are not so much about how much a company made. They are market moving events that ripple beyond one stock and into whole industries. For investors, listening to a competitor’s earnings call can be as significant as tracking down your own stocks, particularly in high-speed sectors like semiconductors. That’s exactly why Nvidia shareholders need to put August 5 on their calendars, it’s when Advanced Micro Devices posts its Q2 results. 

Nvidia and AMD are giants in the data center computing arena, and despite Nvidia’s dominance in the market, AMD’s performance could be signaling trends that can directly influence Nvidia’s stock.

AMD’s Report May Affect Nvidia

Nvidia holds a 90% market share within the data center GPU market, which is an overwhelming advantage that’s largely supported by its hardware-software incorporation. Supporting this dominance is CUDA, Nvidia’s own software framework that provides developers precise control of the workloads within GPUs, which is something AMD still doesn’t have an equivalent for. As a result, AMD’s data center GPU division serves more like catching up to it, but its profits remain significant.

If AMD posts high growth in its data center unit, it may reflect a broad acceleration in demand for GPU infrastructure, lifting Nvidia’s stock in response. If AMD is weak, the market may see that as Nvidia picking up even more share, though that would not necessarily be bad for Nvidia’s stock either. 

In other words, AMD’s profits may be an indicator for demand in the data center. Nvidia shareholders need to be listening not out of fear that AMD is going to take them down, but because AMD’s results could confirm or kill enthusiasm for AI infrastructure growth in general.

Nvidia Has Nothing to Lose

If AMD’s other business segments, such as CPUs or embedded systems are underperforming, Nvidia will probably not be impacted. That’s because Nvidia is much more concentrated and specialized within AI GPUs and high-performance data center hardware. Overall, the industry environment remains bullish. 

Alphabet just boosted its 2025 capex guidance to $85 billion from $75 billion due to growing demand for servers and data centers. Meta Platforms also boosted its capex to $72 billion, further supporting the story that the cloud and AI boom is gaining momentum. These are the same areas Nvidia excels in, and increasing infrastructure budgets are positive for its sustained dominance.

So unless AMD management drops a bombshell statement like demand for GPUs has evaporated, which is very unlikely, Nvidia stock should be unbothered or indifferent, if not strengthened. If AMD shows signs of strength, investors might take that as a go-ahead signal for all data center players.

Focusing on AMD, but Nvidia is Simply Winning

Nvidia is already the unchallenged king of the data center GPU market, and AMD’s August 5 earnings report won’t make a difference there. But what they can do is influence short-term narrative, which is to strengthen the bullish sentiment, indicate a sector-wide increase in demand, or confirm capital flow into AI and server infrastructure. 

Nvidia is still the best bet on the AI arms race, and AMD’s report might be the catalyst that helps push Nvidia even higher. With significant earnings drivers still in store and hyperscalers such as Alphabet and Meta doubling down on data centers, wagging on Nvidia before this cycle may turn out to be quite a fruitful move.

Nvidia isn’t competing the same game as AMD, it’s competing on a different level and that is why it is where it is. With an overwhelming 90% share of the data center GPU market and an unparalleled CUDA software stack, Nvidia is the uncontested AI arms race leader. AMD’s Q2 results may deliver robust data center numbers, which would indirectly confirm the sector’s robust growth. The catch is that even poor AMD performance would be bullish for Nvidia as it would indicate more market share gains. AMD’s next earnings release might be worth a look, but it won’t upset Nvidia’s momentum. 

With hyperscalers such as Alphabet and Meta doubling down on data center investment, the storm is just too strong to disregard. Nvidia is in a situation where the rival’s performance does not matter, whether they win or lose, rather it only better defines its own story. That is a privilege not many companies get. 

If you’re holding out for a great entry point into Nvidia before the market completely prices in these signals, the August 5 AMD earnings might be the go-ahead for you.