AMD (AMD) Earnings Preview

AMD is scheduled to report 3Q25 earnings after the bell today. Zacks anticipates EPS of $1.17 (+27% vs last year) and revenue of $8.72 billion (+28% year-over-year).

Multiple analysts are bullish on the stock headed into earnings, with Bank of America calling it one of the “top beneficiaries” of the multiyear AI infrastructure buildout. Morgan Stanley thinks it will have a “very strong data center quarter,” particularly given supply constraints on rival Intel (INTC).

AMD also has a recent deal with OpenAI buoying optimism: OpenAI will deploy six gigawatts of AMD GPUs, beginning in the second half of 2026. In turn, OpenAI agreed to purchase upwards of 160 million shares of AMD stock, equal to roughly 10% of the company.

AMD also inked a deal to team with Oracle and deploy up to 50,000 GPUs across the cloud company's data centers. In addition, AMD is providing chips to power two Department of Energy supercomputers at Oak Ridge National Laboratory. The systems will represent a $1 billion public and private investment when completed.

On the other hand, Reuters reported that AMD was hit with patent lawsuits by Adeia (ADEA), alleging infringement on ten patents related to semiconductors. AMD’s AI chips are part of the suit; Adeia is seeking unspecified damages and a court order to prevent AMD from using its patented technology. Adeia CEO Paul Davis said AMD's use of its technology has "greatly contributed to their success as a market leader" and Adeia would be open to "a fair and reasonable arrangement that reflects the value of our intellectual property."

Investors will be listening to the post-earnings call for any commentary around the lawsuit, continuing guidance, and information on its supply capacity. As the markets become more nervous about a potential bubble, confidence will be key. AMD may benefit from strong CPU sales in the quarter across both its data center and client businesses. AMD's data center revenue is expected to generate $4.1 billion in Q3, up from $3.5 billion in the prior year, while the company's client segment, which includes sales of CPUs for laptops and desktops, could see $2.6 billion, up 38% year over year.

The stock is up around 115% year-to-date as of Monday’s closing price and over 80% since last year. It made a new all-time high of $267.08 on October 29. The options market is currently implying a +/- $15.70 move, or around 6%. Tune into the Schwab Network for earnings breakdowns and more!

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Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.