Wall Street Expects Big Things From Advanced Micro Devices’ Earnings Today

Core Viewpoint - Advanced Micro Devices (AMD) is set to report its FY2025 full-year and Q4 earnings on February 3, 2026, with Wall Street expecting an EPS of $1.32 and revenue of approximately $9.6 billion, indicating significant year-over-year growth [2][8]. Financial Expectations - Wall Street anticipates EPS of $1.32 and revenue of around $9.6 billion for Q4 2025, reflecting a 21% year-over-year growth in EPS and a 25% growth in revenue [2][9]. - A meaningful earnings beat is defined as EPS of at least $1.40 and revenue exceeding $9.8 billion [4]. - AMD has a history of meeting or beating estimates, achieving an average surprise of approximately 8% in six of the past seven quarters [4]. Historical Performance - In Q3 2025, AMD reported a 10.3% earnings surprise with EPS of $0.75 compared to the $0.68 estimate, and in Q2 2025, it achieved a remarkable 1,180% beat, reporting $0.54 in earnings against an expected loss [5]. Recent Developments - AMD's management projected a 25% year-over-year revenue growth for Q4, with expectations of continued margin expansion [7]. - Data center revenue for Q3 2025 reached $4.3 billion, up 22% year-over-year, driven by demand for AI accelerators [10]. - The client and gaming segments generated $4 billion in combined revenue, marking a 73% year-over-year increase, supported by record sales of Ryzen processors [10]. Analyst Insights - HSBC Securities raised its price target for AMD to $335, citing structural acceleration in server CPU demand driven by agentic AI workloads, and highlighted AMD's competitive advantages in manufacturing partnerships and product cadence [11]. - Zacks Investment Research noted AMD's stock performance of 107.1% over the past year, outperforming NVIDIA's 63.8%, indicating AMD's rapid progress in AI accelerators while maintaining a diversified business model [12].