ETFs to Buy as AMD Shares Sink 7% Despite Q2 Earnings Beat

Against this recent pullback, one must not forget that AMD has nearly tripled over the past year, backed by the soaring demand for its artificial intelligence (AI) chips, and remains up 128% year to date.

Management expects the company’s data center segment revenues to more than double year over year in 2027, while its server revenues are projected to soar more than 80% on an annual basis in the second half of 2026.

These growth projections are expected to provide a sustained tailwind for AMD’s share price, with the recent pullback suggesting to be only a momentary one, thereby offering a golden opportunity for investors to make an entry in this chipmaker right now. 

However, considering the huge 187% year-over-year increase in its Capex, capacity constraints in advanced packaging and volatile HBM4 memory pricing, some investors might remain skeptical of investing in AMD and would instead look for a safer bet. 

For them, a more prudent strategy would be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach will allow investors to capture the potential upside of AMD’s innovation cycle as well as the gains of other tech leaders while mitigating the risks associated with individual stock ownership in a high-valuation environment.

But before diving straight into these ETFs, let us check AMD’s overall performance in the second quarter in terms of other metrics.

A Brief Analysis of AMD’s Q2 Results

AMD’s second-quarter earnings beat the Zacks Consensus Estimate by 3.1%, while revenues topped the mark by 1.9%. 

Its data center revenues grew 107% year over year to a record $6.7 billion, driven by strong demand for EPYC processors and Instinct accelerators. In the server segment, AMD delivered its fifth consecutive quarter of record server CPU revenues with cloud and enterprise sales each growing more than 70% year over year. 

Impressively, within its enterprise segment, more than 230 fifth-gen EPYC platforms are now in market from HPE, Dell, Lenovo, Supermicro and others.  

Revenues from its data center AI business more than doubled in the second quarter, driven by strong demand for its Instinct accelerators. 

Meanwhile, its AI software stack, ROCm reached an important inflection point with the performance, capabilities, and developer experience customers need to deploy AI in production at scale. The breadth of the ecosystem is also expanding with more than 3 million models now run out of the box. 

Looking ahead, Helios, AMD’s rackscale AI platform, which is currently in production, remains on track for initial shipments later in the third quarter, with volume ramp-up expected through the fourth quarter and into 2027, driven by strong customer demand. The company aims to launch a new rack-scale AI platform every year, with each generation delivering significant performance, efficiency and TCO gains. 

With AMD now projecting the data center AI accelerator market to reach $1.4 trillion and the server CPU market to hit $220 billion by 2030 — growing at annual rates of 45% and 50%, respectively — expanding AI workloads across both categories should provide a continuous tailwind for the chipmaker.

AMD-Heavy ETFs to Buy

iShares Semiconductor ETF SOXX  

This fund, with net assets worth $44.99 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the third spot, holding 8.10% of the fund. NVIDIA (NVDA) holds the first spot in this fund, holding 9.01% weightage. 

SOXX has surged 76.8% year to date. This fund charges 33 basis points (bps) as fees. It traded at a volume of 7.64 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy). 

Invesco AI and Next Gen Software ETF IGPT  

This fund, with a market value of $899 million, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the sixth spot, holding 6% of the fund. SK Hynix holds the first spot in this fund, with 9.69% weightage. 

IGPT has rallied 40.5% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.26 million shares in the last trading session.  This fund holds a Zacks ETF Rank #1.

Invesco Semiconductors ETF PSI  

This fund, with a market value of $2.47 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the fifth spot, with 5.43% of the fund. Applied Materials holds the first spot in this fund, with 6.67% weightage. 

PSI has soared 83.4% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.31 million shares in the last trading session.  This fund sports a Zacks ETF Rank #1.

VanEck Semiconductor ETF SMH 

This fund, with total assets worth $70.42 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fourth spot, with 5.38% of the fund. NVDA holds the first spot in this fund, with 22.11% weightage. 

SMH has soared 58.7% year to date. This fund charges 35 bps as fees.  It traded at a volume of 6.23 million shares in the last trading session. 

This fund sports a Zacks ETF Rank #1.

Invesco PHLX Semiconductor ETF SOXQ  

This fund, with a market value worth $2.82 billion, provides exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the 10th spot, holding 4.03% of the fund. NVDA holds the first spot in this fund, with 13.43% weightage. 

SOXQ has surged 70% year to date. This fund charges 19 bps as fees. It traded at a volume of 0.98 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.     

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This article originally published on Zacks Investment Research (zacks.com).

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