AMD Reports Earnings Tuesday. Here’s Why Analysts Expect a Strong Data Center Quarter.

AMD reports earnings after the bell Tuesday. Analysts are expecting strong results from its data center business as AI demand rises and Intel struggles with supply constraints.

Advanced Micro Devices (AMD) reports earnings Tuesday after the close, and Wall Street is looking for solid growth driven by demand for AI and data center chips.

Analysts expect third-quarter revenue of $8.76 billion and adjusted earnings per share of $1.17. For the current quarter, estimates rise to $9.21 billion in revenue and $1.32 per share in earnings. The results come at a critical time for AMD, which has gained ground in both AI and enterprise computing over the past year.

Morgan Stanley Sees a Strong Quarter

Morgan Stanley’s Joseph Moore maintained his Equal Weight rating and $246 price target, but said he expects AMD to post “a very strong data center quarter” on the back of high server demand and Intel’s ongoing supply constraints.

Moore pointed to Intel’s recent comments that demand for CPUs and AI-capable servers has outpaced supply as companies accelerate infrastructure upgrades. This trend, he said, positions AMD to benefit directly.

Both AMD and Intel (INTC) use the x86 chip architecture, but AMD’s growing share in data centers and AI workloads has become a key growth driver in recent quarters.

AMD Expands Its Role in AI Infrastructure

AMD also announced a long-term deal with OpenAI last month to supply six gigawatts of GPUs for the company’s expanding AI infrastructure. The rollout begins in late 2026 with one gigawatt of MI450 GPU servers, reinforcing AMD’s position as a critical player in the next wave of AI computing.

OpenAI, known for products such as ChatGPT and enterprise AI models, is deepening its hardware partnerships as it scales computing capacity. The partnership marks one of AMD’s largest infrastructure supply commitments to date and highlights how central AI demand has become to the company’s strategy.

What Investors Will Look Out for Next

The investor focus will be on how quickly AMD’s data center and AI segments offset softness in traditional PC and gaming chips. Analysts expect guidance to remain upbeat through early 2026, helped by strong enterprise spending and improving chip supply conditions.

AMD shares rose 1.4% on Monday, extending gains from last week as traders positioned ahead of results.

Is AMD a Good Stock to Buy Now?

Wall Street analysts maintain a “Moderate Buy” consensus on AMD stock, based on 39 analyst ratings over the past three months. Of those, 29 rate the stock a Buy and 10 recommend a Hold, with no Sell ratings.

The average 12-month price target for AMD stands at $252.42, reflecting a modest -2.78% downside from the last closing price.

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