AMD Stock: Set for Solid Q3 Results Tuesday as Data Center Demand Surges

TLDR

• AMD reports third quarter earnings Tuesday after market close with analyst expectations of $8.76 billion in revenue and $1.17 adjusted earnings per share
• Morgan Stanley maintains Equal weight rating but expects strong data center performance due to high server demand and Intel supply constraints
• Data Center segment projected to generate $4.18 billion in Q3 revenue, representing 17.6% year-over-year growth
• AMD secured long-term OpenAI deal to supply six gigawatts of GPUs starting with one gigawatt of MI450 servers in late 2026
• MI350 Series GPUs match or exceed NVIDIA B200 performance in training and inference workloads at lower cost

AMD will release its third quarter earnings after the market closes on Tuesday. Wall Street is watching closely.

Analysts expect the chip maker to report September quarter revenue of $8.76 billion. Adjusted earnings per share are projected at $1.17.

Advanced Micro Devices, Inc., AMD

For the current quarter, estimates point to revenue of $9.21 billion and earnings per share of $1.32, according to FactSet.

Morgan Stanley analyst Joseph Moore maintained his Equal weight rating on AMD Monday. He kept his $246 price target but sees good numbers coming.

Both Intel and AMD use x86 chip architecture in their CPU processors. These processors serve as the main computing brains for PCs and servers.

Data Center Business Powers Growth

The Data Center segment is expected to be the star of AMD’s Q3 results. The Zacks consensus estimate for third quarter Data Center revenues stands at $4.18 billion, representing 17.6% year-over-year growth.

AMD’s EPYC processors have been gaining ground in the enterprise market. The company expanded its reach across technology, automotive, manufacturing, financial services and public sectors.

The EPYC 4005 series launch targets small and medium businesses plus hosted IT service customers. Major cloud providers have embraced the platform.

In Q2 2025, more than 100 new AMD-powered cloud instances launched. Google and Oracle rolled out multiple Turin instances.

By the end of Q2, roughly 1,200 EPYC cloud instances were available globally. This availability drives enterprise adoption in the cloud.

On-premises deployments also showed strength. HPE, Dell Technologies, Lenovo and Super Micro launched 28 new Turin platforms in the second quarter.

AI Infrastructure Deal with OpenAI

Last month, AMD announced a major partnership with OpenAI. The deal positions AMD as a key supplier for OpenAI’s AI infrastructure expansion.

The agreement calls for OpenAI to deploy six gigawatts of AMD GPUs. The rollout begins with one gigawatt of rack-scale MI450 GPU servers in the second half of 2026.

OpenAI develops ChatGPT, enterprise AI models, and the recently released social video app Sora. The partnership validates AMD’s position in AI hardware.

AMD unveiled its Instinct MI350 Series GPUs in June 2025. The company claims the MI355 matches or exceeds NVIDIA’s B200 in critical training and inference workloads.

The MI355 delivers comparable performance to GB200 for key workloads. AMD says it achieves this at lower cost and complexity.

Oracle is building a massive AI cluster using AMD hardware. The project combines over 27,000 nodes with MI355X accelerators, fifth-gen EPYC Turin CPUs and Pollara 400 SmartNICs.

AMD’s partner network extends beyond OpenAI and Oracle. The list includes Cohere, IBM, Google, HPE, Dell Technologies, Lenovo and Super Micro.

The company faces tough competition from NVIDIA and Broadcom. NVIDIA’s Hopper 200 and Blackwell GPU platforms are seeing rapid adoption as customers expand AI infrastructure.

Broadcom benefits from strong demand for networking products and custom AI accelerators. The company expects accelerated XPU demand in late 2026 as hyperscalers focus on inference alongside frontier model training.

AMD currently holds a Zacks Rank #3 (Hold). Tuesday’s earnings report will reveal whether the company met Wall Street’s expectations for its data center business and overall performance in the third quarter.

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