AMD set to report Q3 results, eyes on Q4 data-center guidance
AMD will announce third-quarter earnings with revenue guidance around $13 billion, while analysts focus on fourth-quarter outlook and the expected ramp of its Helios GPU systems.
Advanced Micro Devices (AMD) is scheduled to release its third-quarter earnings after the market closes on Tuesday. The company previously guided revenue of about $13 billion, plus or minus $300 million, close to analysts' estimate of $13.09 billion, representing a 41.5% year-over-year increase.
Analysts are placing particular emphasis on AMD's fourth-quarter guidance, especially the contribution from its data-center graphics processing units (GPUs). The firm began shipping its Helios rack-scale systems, built on MI450 chips, in September, and management indicated that the ramp-up is expected to accelerate in the fourth quarter.
Wall Street forecasts for fourth-quarter revenue average roughly $16.3 billion, with Jefferies analyst Blayne Curtis projecting nearer $17 billion. A forecast at or above that level would suggest strong demand for Helios GPUs. AMD counts major AI and cloud customers such as OpenAI, Meta Platforms, Microsoft and Anthropic among its client base.
"Each gigawatt of AI capacity represents double-digit billions in revenue," CEO Lisa Su said.
For context, Nvidia reported $89 billion of data-center revenue in its most recent quarter, while AMD's entire data-center segment generated $6.7 billion. Although AMD is not expected to match Nvidia's scale soon, it is positioned as an alternative supplier for AI workloads.
Potential risks include lower margins on AI chips compared with server processors, which could affect overall gross margin, and a reported contraction in the PC market that may impact AMD's client-processor business.
Investors are monitoring whether the fourth-quarter outlook confirms the anticipated Helios ramp, which could influence longer-term positioning in the AI hardware market.