Wall Street Focuses on AMD Stock Before Earnings: Insights from Christopher Rolland

Advanced Micro Devices (NASDAQ: AMD) is preparing to release its Q3 earnings report on November 4, drawing significant attention from investors and analysts alike. The company’s advancements in artificial intelligence (AI) technology have positioned it as a key player in the sector, particularly with its MI350 and upcoming MI450 series AI accelerators.

Expert Insights on AMD’s Performance

Christopher Rolland, a top-ranked analyst from Susquehanna, believes that AMD’s AI products will be the centerpiece of its earnings report. He emphasizes the importance of the MI350’s ramp-up in the coming year, as well as the potential of the MI450 series.

Market Expectations and Predictions

• MI350 expected to see rapid growth in the second half of the year.
• Many investors anticipate strong performance in the data center GPU market.
• Rolland suggests that Q4 earnings estimates could be exceeded.

Looking beyond 2025, investors remain optimistic about AI growth, especially after OpenAI’s announcement of a new 6GW initiative starting in 2026. This development could lead to substantial revenue, with Rolland estimating about $15 billion per gigawatt of growth.

Additional Growth Catalysts

AMD’s strategic partnerships and projects are also expected to drive growth. Key highlights include:

• Oracle’s AI supercluster utilizing 50,000 MI450 GPUs planned for Q3 2026.
• Success in data center supercomputer projects.
• Partnership with HUMAIN, contributing to future AI applications.

Segment Performance Analysis

Rolland reports that AMD’s EPYC processors for data centers are performing well, bolstered by market share gains and adoption by original equipment manufacturers (OEMs) like Dell. In the client segment, which accounts for 25% of revenues, AMD is experiencing minor growth, despite earlier expectations for a weaker second half.

• Q3 results indicate strong ODM builds.
• Intel’s client business has similarly benefitted from growth driven by tariff-related pull-ins.

Embedded and Gaming Segments

Demand in the embedded segment is recovering, although channel inventories remain elevated. In gaming, AMD has experienced mixed results, losing a small share in aftermarket graphics cards, while GPU prices have increased by 3.3% quarter-over-quarter.

Analyst Ratings and Stock Performance

Overall, Rolland maintains a ‘Buy’ rating on AMD shares, raising the price target to $300, an anticipated 15% increase in value. The consensus from the broader market indicates 28 additional ‘Buy’ ratings and 10 ‘Hold’ ratings, reflecting a positive outlook.

As earnings are announced, all eyes will be on AMD to see if they will adjust forecasts in response to the company’s recent stock performance, which has already exceeded the current average price target of $252.42.

Investors and stakeholders should continue to monitor AMD’s performance closely as key earnings reports approach, especially in light of the advancements in AI technology.