TLDR
- AMD delivers Q4 earnings Tuesday with consensus estimates calling for $9.67 billion revenue and $1.32 EPS
- HSBC boosts price target to $335 from $300, highlighting agentic AI’s impact on server CPU sales
- Reuters reports OpenAI exploring chip alternatives to Nvidia, lifting AMD shares after-hours
- Analysts project data center segment revenue of $4.97 billion, marking 29% growth year-over-year
- Memory supply constraints threaten PC business while CEO Lisa Su showcased Helios server at CES 2026
Advanced Micro Devices releases fourth-quarter earnings Tuesday following market close. The chipmaker is expected to report $9.67 billion in revenue with adjusted earnings per share of $1.32.
Advanced Micro Devices, Inc., AMD
These figures represent substantial growth from Q4 2024 when AMD posted $7.7 billion revenue and $1.09 EPS. First quarter guidance will be closely watched, with analysts modeling $9.42 billion revenue and $1.23 EPS.
The stock has surged 114% over the trailing 12 months. Shares jumped in after-hours trading Sunday after news broke that OpenAI is seeking alternatives to Nvidia’s AI chips.
HSBC analyst Frank Lee updated his AMD outlook Friday, lifting his price target to $335 from $300 while maintaining a Buy rating. Lee pointed to agentic AI as a major driver for server CPU growth.
Server CPUs Offer Hidden Upside
Lee’s research note emphasized that AMD’s server CPU opportunity isn’t fully reflected in the current stock price. He expects the company to capture market share as AI workloads expand.
Intel disclosed earlier this year that supply constraints prevented them from meeting elevated server processor demand. AMD may be better positioned because it outsources chip production to external foundries.
For Q4, Wall Street forecasts data center revenue of $4.97 billion. This represents 29% growth compared to $3.86 billion in the year-ago quarter.
The client segment, which includes laptop and desktop chips, should generate approximately $2.9 billion. AMD’s gaming division is projected to bring in $855 million, jumping 52% from last year’s $563 million.
New Hardware Takes Aim at Nvidia
Lisa Su introduced several products at CES 2026 in Las Vegas last month. The Helios rack-scale server directly competes with Nvidia’s NVL72 offering.
Each system contains 72 GPUs and supports connections to additional racks for building massive AI computing clusters. AMD also detailed its MI500 GPU series, claiming up to 1,000x performance improvements versus MI300X chips.
Su projects the AI data center market will reach $1 trillion by 2030. This massive opportunity has intensified competition as hyperscalers like Google, Amazon, and Microsoft develop proprietary chips.
The global memory shortage creates near-term headwinds for AMD’s consumer business. Supply constraints may force PC manufacturers to increase prices, potentially dampening demand.
The OpenAI development signals that major AI companies are diversifying their hardware suppliers. This trend could open doors for AMD to win additional design wins in the AI accelerator market.
AMD also revealed new AI-capable PC processors and announced plans for the humanoid robotics sector during the CES presentation.
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