TLDR
- AMD reports Q4 earnings Tuesday with Wall Street expecting $9.67 billion revenue and $1.32 adjusted EPS
- HSBC upgrades price target to $335, citing agentic AI as growth driver for server CPUs
- OpenAI reportedly seeking alternatives to Nvidia chips, sending AMD shares higher after-hours
- Data center revenue projected at $4.97 billion, up 29% from prior year quarter
- Global memory shortage creates headwinds for PC business while new Helios server targets Nvidia
Advanced Micro Devices reports fourth-quarter results Tuesday after the bell. Analysts expect the chipmaker to post revenue of $9.67 billion with adjusted earnings per share of $1.32.
Advanced Micro Devices, Inc., AMD
The numbers would show strong growth from last year’s Q4 revenue of $7.7 billion and EPS of $1.09. Current quarter estimates call for $9.42 billion in revenue and $1.23 EPS.
AMD shares gained 114% over the past year. The stock got another boost Sunday evening after Reuters reported OpenAI is exploring alternatives to Nvidia chips.
Analyst Sees Upside From Agentic AI
HSBC analyst Frank Lee raised his AMD price target Friday to $335 from $300. He kept his Buy rating intact.
Lee highlighted agentic AI as a catalyst for server CPU demand. He believes the market hasn’t fully priced in AMD’s potential in this area.
“We expect AMD to be a key beneficiary as the upside potential from server CPUs is not fully priced in,” Lee wrote.
Intel reported earlier this year they couldn’t meet higher server processor demand due to supply issues. Lee thinks AMD has an advantage because it relies on external foundries.
Wall Street projects Q4 data center revenue of $4.97 billion. That’s a 29% increase from the $3.86 billion AMD reported last year.
The client business should generate around $2.9 billion. Gaming revenue is forecast at $855 million, up 52% year-over-year from $563 million.
New Products Target Nvidia’s Market Share
CEO Lisa Su unveiled new hardware at CES 2026 last month. The Helios rack-scale server directly challenges Nvidia’s NVL72 system.
Both products pack 72 GPUs and can link together to form larger AI computing systems. AMD’s MI500 series GPUs claim up to 1,000x performance gains over older MI300X chips.
Su estimates the AI data center market will hit $1 trillion by 2030. Competition is heating up as Google, Amazon, and Microsoft deploy their own custom chips.
The global memory shortage presents near-term challenges. PC makers may need to raise laptop and desktop prices, potentially hurting AMD’s consumer chip sales.
AMD also introduced new AI PC chips and outlined robotics industry plans at the Las Vegas event. The OpenAI report suggests major AI companies are diversifying their chip suppliers beyond Nvidia.
The post AMD Stock: Reports Fourth Quarter Results Tuesday – Here’s What To Expect appeared first on Blockonomi.
Source: https://blockonomi.com/amd-stock-reports-fourth-quarter-results-tuesday-heres-what-to-expect/