AMD Stock: All Eyes on Q3 Results After Record-Breaking Month
Advanced Micro Devices (NASDAQ: AMD) is set to release its third-quarter earnings after Tuesday’s closing bell, as investors anticipate another strong performance following the stock’s best month since 2001.
- AMD reports Q3 earnings Tuesday after the close.
- Analysts expect $8.76B revenue and $1.17 EPS.
- $1B deal signed with the U.S. Department of Energy for AI supercomputers.
- New GPU supply agreement reached with OpenAI.
- Stock near overbought zone after best month since 2001.
The chipmaker’s recent surge comes amid mounting optimism over its growing influence in the artificial intelligence (AI) and data center markets.
Strong Quarter Expected Amid AI Momentum
Wall Street expects AMD to post solid results, with consensus estimates calling for revenue of $8.76 billion and adjusted earnings per share (EPS) of $1.17 for the September quarter, according to FactSet data. For the current quarter, analysts forecast revenue of $9.21 billion and EPS of $1.32, reflecting growing confidence in the company’s long-term AI strategy.
Morgan Stanley’s Joseph Moore reaffirmed an Equal Weight rating on AMD and a $246 price target ahead of the report but noted that the company is likely to deliver “good numbers.” Moore highlighted strong data center demand and Intel’s ongoing supply constraints as catalysts for AMD’s performance. “AMD should have a very strong data center quarter, given robust server demand and Intel’s supply limitations,” he wrote in a recent note.
Intel’s latest commentary also supports this narrative, revealing that corporations are upgrading servers faster than anticipated, further tightening supply in the x86 CPU market. This dynamic could give AMD a temporary advantage as it capitalizes on its expanding product lineup and competitive pricing.
Government and AI Partnerships Bolster Outlook
Adding to the bullish sentiment, AMD recently announced a landmark $1 billion collaboration with the U.S. Department of Energy (DOE) to build two AI-powered supercomputers. One system will debut early next year, powered by AMD’s most advanced AI technologies, while the second will utilize the upcoming MI400 series chips.
🚨 $AMD and the U.S. (DOE) have announced a $1 billion partnership to build 2 AI-powered supercomputers.
One super computer will launch early next year using AMD’s latest AI technology the second will incorporate AMD’s upcoming MI400 series chips. $AMD reports earnings… pic.twitter.com/6xSFthhGRZ
— Mont Blanc Research (@mblancresearch) November 3, 2025
This deal reinforces AMD’s growing leadership in high-performance computing and AI infrastructure—segments that are expected to define the next phase of semiconductor growth. Analysts say the partnership could enhance AMD’s credibility among enterprise and government clients while showcasing the potential of its next-generation hardware.
The announcement follows another major development last month: a long-term deal with OpenAI. Under the agreement, AMD will supply GPUs for OpenAI’s large-scale AI infrastructure buildout, with plans to deploy six gigawatts of AMD GPUs by 2026. The rollout will begin with one gigawatt of MI450 GPU servers in the second half of 2026, signaling AMD’s aggressive expansion into the AI accelerator market—a domain currently dominated by Nvidia.
Stock Performance and Technical Indicators
AMD shares closed Monday’s session at $259.65, up 1.38% for the day, after briefly touching an intraday high of $260.91. Despite the upbeat momentum, pre-market data shows a 2.79% dip to $252.40, suggesting cautious sentiment ahead of earnings.
Technically, AMD’s chart remains strong. The stock has rallied more than 30% since early October, and the Relative Strength Index (RSI) is hovering around 70—indicating overbought conditions but also reflecting strong buying pressure. Meanwhile, the MACD indicator remains positive, hinting that bullish momentum could persist in the near term.
The recent rally was fueled in part by AMD’s AI announcements and broader optimism around chipmakers benefiting from the AI boom. However, short-term volatility may increase depending on the company’s earnings guidance and commentary on future demand trends.
Best Month Since 2001 Sets the Stage
November earnings arrive after AMD logged its best monthly performance in over two decades. The rally underscores investor enthusiasm for the company’s AI strategy and expectations that it could narrow the gap with Nvidia in the data center GPU market.
Mont Blanc Research noted that the market will be watching closely to see how the DOE partnership and OpenAI deal factor into AMD’s earnings narrative. “It will be interesting to track how this information, released a week ago, is digested into the earnings,” the firm wrote.
What to Watch
Analysts and investors will be paying close attention to:
- AMD’s data center revenue growth and AI chip sales momentum.
- Updates on the MI400 and MI450 GPU rollout timelines.
- Management’s outlook for 2025 amid tightening global chip supply.
- Potential commentary on macroeconomic factors affecting corporate IT spending.
While AMD’s current valuation reflects high expectations, continued success in AI, supercomputing, and cloud infrastructure could justify its premium. The upcoming earnings call is expected to shed light on whether AMD can maintain its growth trajectory and challenge Nvidia’s dominance in the AI hardware space.
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