TLDR
- AMD posts Q3 earnings Tuesday after close with analyst consensus at $8.76 billion revenue and $1.17 EPS
- Morgan Stanley analyst expects very strong data center quarter due to server demand and Intel supply constraints
- Data Center segment forecast at $4.18 billion, representing 17.6% year-over-year increase
- Six gigawatt OpenAI GPU deal starts deployment in second half 2026 with MI450 servers
- MI350 Series accelerators compete with NVIDIA B200 on performance while offering better economics
AMD unveils third quarter results Tuesday evening. The setup looks promising for the chip maker.
Analyst consensus points to $8.76 billion in September quarter revenue. Adjusted earnings per share expectations stand at $1.17.
Advanced Micro Devices, Inc., AMD
Looking ahead, Wall Street models $9.21 billion in revenue for the current quarter. Earnings per share projections come in at $1.32, according to FactSet.
Morgan Stanley’s Joseph Moore held his Equal weight rating and $246 price target Monday. His outlook for the quarter remains upbeat.
Moore highlighted strong server demand and Intel supply constraints as tailwinds. Intel recently disclosed that demand is outrunning supply as enterprises speed up their hardware refresh cycles.
EPYC Processors Gaining Market Share
The Data Center business appears ready to deliver. Analysts project Q3 segment revenue of $4.18 billion, up 17.6% from the prior year.
AMD’s EPYC chip family keeps winning enterprise customers. More than 100 AMD-powered cloud instances went live in Q2 2025, with Google and Oracle deploying multiple Turin configurations.
The global count reached roughly 1,200 EPYC cloud instances by Q2’s close. This availability drives adoption among cloud users.
Hardware vendors supported the push. HPE, Dell Technologies, Lenovo and Super Micro introduced 28 Turin platforms in the second quarter.
The EPYC 4005 series expands AMD’s reach into small and medium business markets. Hosted IT service providers represent another growth avenue.
AI Infrastructure Deals Boost Growth Outlook
AMD landed a major OpenAI contract last month. The partnership positions AMD as a core supplier for OpenAI’s infrastructure expansion.
The deal covers six gigawatts of GPU capacity. Deployment kicks off with one gigawatt of MI450 rack-scale servers in late 2026.
AMD launched its Instinct MI350 Series in June 2025. The MI355 model reportedly matches or exceeds NVIDIA’s B200 across critical AI training and inference tasks.
Performance comes at a better price point. AMD claims the MI355 delivers GB200-level capabilities with reduced cost and complexity.
Oracle is constructing a massive AI cluster using AMD technology. The system combines more than 27,000 nodes featuring MI355X accelerators, fifth-generation EPYC Turin CPUs and Pollara 400 SmartNICs.
Competitive Landscape Remains Intense
NVIDIA continues pushing its Hopper 200 and Blackwell GPU platforms. Customer adoption stays brisk as AI infrastructure investments accelerate.
Broadcom sees strong traction with networking hardware and custom AI accelerators. The company forecasts increased XPU demand starting late 2026 as hyperscalers balance training and inference workloads.
AMD’s partner base includes Cohere, IBM, Google, HPE, Dell Technologies, Lenovo and Super Micro. Tuesday’s report will reveal whether EPYC momentum and Instinct adoption drove results that meet or top Wall Street’s $8.76 billion revenue target and $4.18 billion data center expectation for the third quarter.
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