AMD Q3 Earnings Preview: Revenue and AI Growth in Focus

Advanced Micro Devices (NYSE:AMD) is set to release its third-quarter earnings on Tuesday after markets close. Wall Street analysts anticipate strong growth, driven by high demand for the company’s artificial intelligence (AI) chips. The focus is on whether AMD will meet or exceed these expectations and if any new AI revenue guidance or customer announcements will be revealed.

For the third quarter, analysts project revenue of $6.71 billion—a year-over-year increase of nearly 16% from $5.8 billion in Q3 2023, according to Visible Alpha data. Net income is forecast to reach $815.76 million, or $0.50 per share, more than double the $299 million, or $0.18 per share, from the same period last year.

Key Estimates for AMD Q3 Earnings:

AMD's second-quarter data center revenue set a record, doubling to $2.8 billion on soaring AI chip demand. However, at its recent Advancing AI event, the company did not raise its AI revenue forecast, leaving some investors awaiting updates. Jefferies analysts suggest that this quarter’s earnings release could be pivotal for more clarity on AI growth plans.

Investor sentiment remains positive. Over 80% of analysts covering AMD have rated it a "buy" with an average price target of $192.13—23% above AMD’s recent closing price of $156.23. AMD shares have risen 6% this year.

As the AI market grows, investors are watching closely for AMD’s progress, which could fuel future gains in AMD stock if forecasts hold.