AMD Doubles in 2025: Earnings Add Risk to Chipmaker's Stunning Run

Core Insights - AMD is expected to report strong earnings, with EPS projected at $1.17 and revenue at $8.72 billion for the third quarter, indicating growth across both metrics [3][4] - Major partnerships with OpenAI and Oracle are anticipated to impact future earnings, but their effects will not be reflected in the current report [2][3] - Analysts express mixed sentiments regarding AMD's AI segment, with some indicating that demand for graphics processing units is merely "fine," which could lead to downward pressure on stock prices [5][6] Financial Performance - The data center server segment is expected to generate $2.4 billion, while the AI segment is projected to bring in $1.7 billion in revenue [4] - UBS forecasts a strong third quarter report but notes that AMD's stock has outperformed significantly, up nearly 110% year-to-date, which may present challenges [10] Market Dynamics - Morgan Stanley highlights that AMD needs to provide better returns on investment than competitors like Nvidia to gain market share, especially in light of ecosystem issues [9] - The upcoming launch of the MI450 series and Helios system is crucial for AMD's future growth, with significant deployments expected to start in late 2026 [7][8] Strategic Considerations - There is speculation that AMD may withhold major announcements until its analyst day later this month to maintain upward momentum [11] - The company faces potential risks from export controls to China, which could impact its operations and market outlook [15][16]