AMD (AMD) is set to report fourth-quarter earnings on Tuesday, and investors will watch out for the company’s data center business expansion, as competition in the artificial intelligence space intensifies, along with updates on the production timeline for MI455 and customer engagement for MI355.
Wall Street expects the Santa Clara, California-based company to post EPS of $1.32, implying a 21.1% increase year-over-year, while revenue is expected to rise 25.6% to $9.67B for the quarter.
AMD’s CFO Jean Hu, during its Q3 earnings call, said that the company’s fourth-quarter revenue of approximately $9.6B, plus or minus $300M, excludes revenue from AMD Instinct MI308 shipments to China.
Wells Fargo reiterated its Overweight rating for AMD, with a price target of $345, implying an upside of more than 45% from Friday’s close of $236.73.
Wells Fargo analyst Aaron Rakers expects AMD to report data center upside driven by EPYC server CPU momentum. “AMD’s Turin EPYC ramp (with ASP uplift), strong (50%+) share in cloud, and anticipated ongoing share gains at traditional OEMs remain positive upside drivers.”
Most analysts are bullish on the stock, with Seeking Alpha analysts and Wall Street rating it a Buy, while Seeking Alpha’s Quant rating classifies it as a Strong Buy.
KeyBanc Capital Markets also maintained its Overweight rating for AMD, with a price target of $270.
“We see improving traditional server demand momentum and strength in latest-generation Turin CPUs, with hyperscaler demand leaving server CPU capacity largely sold out through 2026 and supporting potential server CPU ASP increases,” highlighted John Vinh, analyst at KeyBanc Capital Markets.
Vinh added, “AI GPU revenue visibility sits at ~$14B-$15B for 2026, driven by ~200K MI355 shipments in 1H and 400-500K MI450 units in 2H (including ~290K-300K for Helios), with MI455 volume ramps beginning in 3Q26 and full Helios rack shipments in 4Q26.”
Over the last two years, AMD has beaten EPS estimates 75% of the time and has beaten revenue estimates 100% of the time.
Over the last three months, EPS estimates have seen 20 upward revisions versus 15 downward revisions, while revenue estimates have seen 34 upward revisions compared with one downward move.
The company’s stock has gained nearly 100% in the past year, compared to the 14.3% rise in the broader S&P 500 Index.