AMD Q3 Earnings Due After the Bell Tuesday: Wall Street Expects $1.97 EPS on $13 Billion Revenue
Key Takeaways
- •Analysts expect AMD to post third-quarter EPS of $1.97 on revenue of $13 billion, representing approximately 41% growth from the prior year.
- •The Data Center segment is projected to generate $8.19 billion in revenue, up 88% year over year, driven by EPYC server processors and Instinct AI accelerators.
- •Intel's weak fourth-quarter guidance, which triggered a nearly 29% drop in its stock, has intensified scrutiny of PC demand across the chip sector.
- •Gaming revenue is forecast to fall 49% to $655 million as the memory and storage shortage raises prices for graphics cards and console chips.
- •Q4 revenue guidance may matter more than the quarter itself, with investors also watching Instinct sales, EPYC server demand, and evidence of PC weakness.
AMD (AMD) is set to report third-quarter results after the bell on Tuesday, November 3, and Wall Street is looking for a fresh read on AI chip demand when the numbers arrive. The report lands after a rough week for the AI trade.
The company's shares closed at $466.84 on Monday, down $37.96, or 7.52%. In pre-market trading, the stock was up 2.37% at $477.90.
The earnings report comes days after a weak outlook from Intel (INTC), AMD's rival in PC and server processors, put PC demand in focus across the chip sector. Intel beat third-quarter earnings estimates but guided fourth-quarter revenue to a range of $15 billion to $16 billion, below the roughly $17 billion analysts had anticipated. Intel stock fell nearly 29% on the news. The company attributed its outlook to a bigger drop in the PC market than it had planned for.
PC demand currently faces two problems. Last year's Windows 10 end of support (October 2025) pushed firms to buy new machines, which makes this year's comparisons difficult. PC prices have also continued climbing, which cuts into demand. AMD earns most of its revenue from data centers, but weak PC sales could still hurt its results.
What Wall Street Expects
Bloomberg consensus calls for AMD to post third-quarter earnings per share of $1.97 on revenue of $13 billion. A year ago, AMD reported EPS of $1.20 on revenue of $9.2 billion. The $13 billion figure matches the company's own guidance, and would represent growth of about 41% from last year and 13% from the prior quarter.
The Data Center segment, home to AMD's EPYC server processors and Instinct AI accelerators, is expected to bring in $8.19 billion, up 88% from $4.34 billion a year earlier. Data Center revenue more than doubled year over year in the second quarter, when CEO Lisa Su said EPYC demand was accelerating and Instinct deployments were growing.
The Client business, which includes PC sales, is set to top $3.06 billion. That would be up 11% from last year but flat from the prior quarter.
Gaming could take a hit. Analysts see segment revenue falling 49% to $655 million. The memory and storage shortage is pushing up prices for graphics cards and console chips, and higher prices are weighing on demand.
AMD also expanded its partnership with Meta in late October. Last month, the company announced its Helios reference design, a server rack built around AMD CPUs and GPUs.
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% in Q3. Investors will look at Q4 revenue guidance and Instinct sales, and will also track EPYC server demand and any sign of PC weakness.
Intel said some of its server products faced supply constraints, which suggests data center demand is still running ahead of supply in parts of the market.
AMD stock-linked perpetual futures, such as AMDUSDT on MEXC, trade outside regular US hours. Perpetual futures are contracts with no fixed expiry date, so positions can be opened or closed at any hour. Those contracts could see sharp moves after the report.
