Core Insights - Advanced Micro Devices (AMD) is expected to report Q4 2025 earnings on February 3, 2026, with Wall Street anticipating an EPS of $1.32 and revenue of approximately $9.6 billion, reflecting 21% year-over-year growth in EPS and 25% in revenue [1] - AMD shares have increased by 115% over the past year, significantly outperforming the broader technology sector [1] Financial Expectations - Expected gross margin is 54.5% [1] - Data center revenue is projected to exceed $4 billion [1] - Consensus revenue is around $9.6 billion, with EPS consensus at $1.32 [1] - A meaningful earnings beat would require EPS of at least $1.40 and revenue exceeding $9.8 billion [1] Historical Performance - AMD has beaten or met earnings estimates in six of the past seven quarters, with an average surprise of approximately 8% [1] - In Q3 2025, AMD reported a 10.3% earnings surprise, with earnings of $0.75 compared to an estimate of $0.68 [1] - Q2 2025 saw an exceptional 1,180% earnings beat, with actual earnings of $0.54 against an expected loss [1] Recent Developments - Management guided Q4 revenue to approximately $9.6 billion with a gross margin of 54.5% [1] - The client and gaming segments generated $4 billion in combined revenue, up 73% year-over-year, driven by record Ryzen processor sales [1] - Data center revenue reached $4.3 billion, up 22% year-over-year, fueled by demand for EPYC processors and Instinct AI accelerators from major clients like OpenAI, Oracle, and IBM [1] Analyst Sentiment - HSBC raised its price target for AMD to $335 from $300, citing structural acceleration in server CPU demand driven by AI workloads [1] - Zacks Investment Research noted AMD's stock performance of 107.1% over the past year, compared to NVIDIA's 63.8%, indicating AMD's competitive position in AI accelerators [1] - The average analyst price target is $289.23, suggesting a 17% upside from current levels, with 41 out of 53 analysts rating it as Buy or Strong Buy [1] Potential Stock Movements - Bull case triggers include positive management commentary on MI500 series GPU ramp and data center revenue surpassing $4.5 billion [1] - Bear case triggers involve cautious 2026 guidance and revenue misses below $9.4 billion, particularly in the Data Center segment [1] - Wild cards include potential China export restrictions and broader concerns about AI infrastructure spending [1] Market Confidence - The options market indicates a 91.5% probability that AMD will beat consensus estimates, reflecting strong investor confidence [1] - Analysts are focused on sustaining data center revenue growth above $4.3 billion, which is critical for justifying AMD's premium valuation [1] Valuation Context - AMD trades at 37.31x forward earnings, a premium to the semiconductor sector average, justified by a 60.3% year-over-year earnings growth [1] - The company's PEG ratio of 0.51 suggests that the growth rate supports current multiples, although any guidance disappointment could lead to multiple compression [1]

Quick Read Advanced Micro Devices (AMD) reports Q4 2025 earnings on February 3. Wall Street expects $1.32 EPS on $9.6B revenue. AMD shares gained 112% over the past year. Q3 Data Center revenue hit $4.3B up 22% YoY driven by AI accelerators. HSBC raised its AMD price target to $335 citing structural acceleration in server CPU demand from agentic AI workloads. Investors rethink 'hands off' investing and decide to start making real money Advanced Micro Devices (NASDAQ: AMD) reports FY2025 full-year ...

Core Insights - Advanced Micro Devices (AMD) is expected to report fourth-quarter 2025 results on February 3, with projected revenues of $9.6 billion, indicating a year-over-year growth of 25% and a sequential growth of approximately 4% [1][10] - The Zacks Consensus Estimate for AMD's fourth-quarter revenues stands at $9.67 billion, reflecting a year-over-year growth of 26.2%, while earnings per share are estimated at $1.33, showing a 22% increase year-over-year [2] Revenue and Earnings Estimates - AMD's fourth-quarter guidance suggests strong double-digit growth in the Data Center and Client and Gaming segments, with a return to growth in the Embedded segment [8] - The Data Center segment is expected to see double-digit growth driven by strong demand for EPYC processors and MI350 Series GPUs, while the Client and Gaming segment anticipates an increase in client revenues but a decline in gaming revenues [8][9] Competitive Landscape - AMD faces significant competition from NVIDIA and Intel, with NVIDIA benefiting from its newer GPU platforms and Intel making strategic moves to strengthen its position in the AI sector [12] - Despite competition, AMD's stock has surged 112.6% over the past year, outperforming the Zacks Computer and Technology sector but lagging behind the Computer–Integrated Systems industry [13] Valuation Metrics - AMD's current valuation is considered stretched, with a forward 12-month price/sales ratio of 7.03X, compared to the industry's 4.2X and Intel's 4.05X [16] Strategic Developments - AMD's strategy focuses on "AI Everywhere, for Everyone," with significant advancements in its AI portfolio, including the Helios rack-scale platform and new processor lineups [19][20] - The company anticipates the data center total addressable market to reach $1 trillion by 2030, with a projected CAGR of over 40% from approximately $200 billion in 2025 [22] Conclusion - AMD's expanding portfolio and strong partner base are expected to enhance its revenue growth, supported by robust demand for its EPYC chips and Instinct accelerators, making the stock an attractive investment opportunity [23]