TLDR
- AMD reports Q3 results after the bell Tuesday, November 3
- Wall Street expects EPS of $1.97 on revenue of $13 billion
- Data Center sales are forecast to rise 88% to $8.19 billion
- Gaming revenue is seen falling 49% to $655 million
- Intel’s weak Q4 outlook has put PC demand under a microscope
AMD (AMD) stock closed Monday at $466.84, down $37.96 or 7.52%. In pre-market trading, it was up 2.37% at $477.90.
Advanced Micro Devices, Inc., AMD
The chipmaker reports third quarter results after the bell Tuesday. Wall Street wants a clear read on AI chip demand.
The report follows a tough week for the AI trade. Intel (INTC) gave a weak outlook last Thursday.
Intel beat Q3 estimates but guided Q4 revenue to between $15 billion and $16 billion. Analysts had expected about $17 billion.
Intel stock fell nearly 29% on the news. The company blamed a steeper drop in the PC market than it expected.
Two things are hurting PCs. Last year’s Windows 10 end of support makes for a tough comparison, and rising PC prices are cutting into demand.
AMD earns most of its revenue from data centers. Even so, weak PC sales could still dent its bottom line.
What Wall Street Expects
Bloomberg consensus calls for EPS of $1.97 on revenue of $13 billion. A year ago, AMD posted EPS of $1.20 on revenue of $9.2 billion.
The $13 billion figure matches AMD’s own guidance. That works out to growth of about 41% from last year and 13% from the prior quarter.
Data Center is expected to bring in $8.19 billion, up 88% from $4.34 billion. In Q2, the segment’s revenue more than doubled.
Client revenue, which includes PC sales, is set to top $3.06 billion. That is up 11% from last year but flat from the prior quarter.
Gaming could take a hit, with revenue seen falling 49% to $655 million. The memory and storage shortage is pushing up prices for graphics cards and console chips.
What to Watch on the Call
Guidance may matter more than the quarter itself. AMD previously guided for a non-GAAP gross margin of about 56%.
Investors will also track Instinct sales and EPYC server demand. Intel said some of its server products faced supply constraints.
AMD stock-linked perpetual futures, such as AMDUSDT on MEXC, trade outside regular US hours. Moves there could be sharp after the report.
Last month, AMD announced its Helios reference design, a server rack built around its CPUs and GPUs. In late October, it also expanded its partnership with Meta.
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