Advanced Micro Devices' Q3 2025 Earnings: What to Expect

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is expected to report strong fiscal third-quarter earnings, driven by robust sales in key product segments and strategic growth initiatives in AI and data centers [1][5]. Financial Performance - Analysts anticipate AMD will report a profit of $0.97 per share for Q3 2025, reflecting a 27.6% increase from $0.76 per share in the same quarter last year [2]. - For the full fiscal year 2025, AMD's expected EPS is $3.14, a 19.9% increase from $2.62 in fiscal 2024, with projections of $5.29 EPS in fiscal 2026, representing a 68.5% year-over-year growth [3]. Stock Performance - AMD's stock has outperformed the S&P 500 Index, gaining 54.2% over the past 52 weeks compared to the S&P 500's 14.8% increase [4]. - The stock also surpassed the Technology Select Sector SPDR Fund's (XLK) 24.8% gains during the same period [4]. Business Growth Drivers - The company's strong performance is attributed to record sales of Ryzen and EPYC processors, alongside robust demand in the gaming segment [5]. - Revenue growth is driven by significant advancements in AI, data center, and GPU segments, with AMD planning to expand its AI data center business for further revenue potential [5]. - The launch of the MI350 GPU line and the development of the next-generation MI400 series are expected to contribute to future growth [5]. - Strategic investments in hardware and software, including recent acquisitions, are enhancing AMD's AI ecosystem and involvement in global sovereign AI initiatives [5].