AMD (AMD) Reports Earnings on Tuesday: What to Watch

AMD (AMD) reports third-quarter results after the market closes on Tuesday, 3 November, with a call at 5 p.m. ET.

Last quarter beat estimates and the stock still fell. Revenue rose 50% from a year earlier to $11.5 billion, and adjusted EPS of $1.66 topped the $1.62 analysts expected, according to LSEG data cited by CNBC. The data center business, which sells server processors and Instinct AI chips, more than doubled to $6.7 billion. AMD guided to about $13 billion of third-quarter revenue, above the $12.52 billion LSEG consensus, but some analysts had hoped for as much as $14 billion. The stock sank 7.0% on 5 August.

“Market wanted a blowout guide driven by Helios,” Daniel Newman, chief executive of the Futurum Group, wrote on X at the time.

What analysts expect

The average on Yahoo Finance, which doesn’t name its data provider, is revenue of $13.08 billion, up from $9.25 billion a year ago, and adjusted EPS of $1.94, up from $1.20. Investing.com’s consensus, also unattributed, is almost the same, at $13.06 billion and $1.94. That’s in line with AMD’s own forecast of $13 billion, give or take $300 million, and an adjusted gross margin of about 56%.

What to watch

• Helios. Helios, AMD’s rack-scale system that sells its AI chips as a whole server rack, is due to ramp up in the fourth quarter, Jefferies noted. On 27 October AMD said Meta Platforms (META) has installed the first ones and is testing them. Jefferies “cautioned that initial deployments could face delays,” Proactive reported.
• The December-quarter forecast. Jefferies expects AMD to guide to $17 billion of revenue, above the Street’s $16.3 billion, Proactive reported. Yahoo Finance’s average is $16.17 billion. After August, the guide is the number most likely to move the stock.
• Data center growth. It was 58% of revenue last quarter. Wall Street expects data center revenue to top $70 billion in 2027, while big investors are hoping for $80 billion to $90 billion, Jefferies told clients, according to Proactive.

How the stock has done

AMD fell 2.1% on Thursday to $566.42, 12.8% below its 52-week closing high of $649.42 from 6 October. The stock is still up 164.5% this year, but it has lost 7.4% over the past month. It has moved 5% or more on 53 of the last 252 sessions, including an 8.1% fall on 22 October and a 5.5% gain on 27 October, when it said Meta was testing Helios.