AMD likely to report strong Q3 results, guidance, gain AI share: Northland

AMD (NASDAQ:AMD) is slated to report third-quarter results after the close of trading tomorrow, and Northland Capital is expecting strong results, with the possibility that it takes share in the server CPU and artificial intelligence accelerator markets next year.

“We expect AMD to report revenue at or above the high end of guidance, driven by share gains in server CPUs and client PCs as well as continued growth in AI revenue,” analyst Gus Richard wrote in a note to clients.

Richard, who has an Outperform rating and $175 price target on AMD, said there has been “increasing evidence” over the past 90 days that AMD is picking up share in the enterprise market from Intel (INTC), while non-AI server demand has also improved, to go with the company’s “substantial market share momentum” in the AI part of the data center.

“We expect AMD to guide revenue above consensus for Q4 as their market share momentum in AI, server CPU, and client continues,” Richard added.

Richard also posited that AMD could take market share from Nvidia (NVDA) in the AI accelerator market, due to the delays related to Nvidia’s Blackwell line of GPUs, which have since been resolved.

A consensus of analysts expect AMD to earn $0.92 per share on $6.71B in revenue for the third quarter.