While Nvidia dominates in AI GPUs, analysts still see room for AMD to capture a meaningful slice of the market.

Advanced Micro Devices Inc. earnings are expected to show the chipmaker is increasingly benefiting from the artificial intelligence arms race. The question is whether it’s enough to justify a rally that has outpaced Nvidia Corp.

Investors likely wanted more upside after a rally in the stock price over the past three months. The stock pointed 5.4% lower at $164.99 in premarket trading Friday. The chip maker reported second-quarter adjusted earnings per share of 48 cents,