Advanced Micro Devices Q3 Preview: AMD Stock Could Surge on ‘Beat-and-Raise’ Earnings, Analyst Says

Advanced Micro Devices Inc (NASDAQ:AMD) is scheduled to report its third-quarter results on Nov. 3. Companies across the AI infrastructure space continue to cite demand ahead of supply, while hyperscalers and other large buyers continue to raise budgets, according to Stifel. • Advanced Micro Devices stock is showing positive momentum. What’s the outlook for AMD shares? The Advanced Micro Devices Analyst: Analyst Ruben Roy reiterated a Buy rating and price target of $700. The Advanced Micro Devices Thesis: The company is likely to report a beat-and-raise quarter, Roy said in the note. Check out other analyst stock ratings. Advanced Micro Devices is likely to beat management’s revenue guidance of around $13 billion and adjusted gross margin of about 56%, he added. "We are incrementally positive on AMD’s CPU server positioning following our September IR dinner with ecosystem server-build capacity / DRAM the primary constraint," the analyst wrote. This makes EPYC (high-performance server and data center CPUs used for heavy enterprise workloads, cloud computing, and AI) the most likely driver of upside in the near term, he noted. See More: Top Quality Stocks Longer-term Helios commentary and details on the recent World Labs acquisition are likely to be in focus much more than the results or the near-term outlook, Roy said. The analyst added, however, that the fourth-quarter guidance is important as this is when: Revenue from MI450 (next-gen AI GPU) begins. There is pressure of around 100 basis points (bps) on gross margins. Whether management provides further clarity into their 2027 Data Center framework. "EPYC upside supports the near-term setup, while initial MI450 revenue and the 4Q margin outlook are the next tests," he further wrote. Q2 Financial Results: Advanced Micro Devices reported record second-quarter revenues of $11.5 billion, representing 50% year-over-year growth, with a non-GAAP gross margin of 56%, citing a favorable mix shift toward data center products. AMD Price Action: Shares of Advanced Micro Devices had declined by 0.66% to $629.85 at the time of publication on Monday. Read Also: Taiwan Semiconductor Stock Hits 52-Week High — What's Going On? Photo: Shutterestock