AMD’s stock (NASDAQ: AMD) is rallying into today’s earnings, up 7.% at $521.92, with the print set after the closing bell.
The Street is looking for an EPS of $1.61, on revenue of $11.31 billion, a 47.11% Y/Y sales growth rate. The EPS is even more impressive, with the previous year quarter of $0.48 paling in comparison to this quarter’s expectation.
Momentum is also expected to hold into the next financial year, with FY27 expected to show EPS expanding from $7.46 to $13.92, with revenue growth of 60.91%. With numbers like these, it is perhaps no surprise that AMD’s stock price is sitting 195% higher over the past 12 months.
The primary focus will be on data-centre segment performance, specifically revenue growth in Instinct GPUs and EPYC processors, alongside gross margin trends and management’s guidance for the second half of the year.
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The company has benefited from strong demand for AI accelerators and server infrastructure, and investors will be looking for confirmation that the MI-series product ramp is proceeding as planned and that EPYC continues to gain share in the data-centre CPU market.
Gross margin performance will also be closely monitored, given that higher-margin data-centre products have been carrying more weight in the revenue mix. Any commentary on supply-chain conditions, packaging capacity, or customer deployment timelines will be scrutinised for signals about the pace of growth through the end of 2026.
Major customers including OpenAI and Meta have agreements covering significant volumes of AMD’s accelerators, and the recent Core Scientific partnership adds substantial deployment capacity for AMD customers starting in 2027. The partnership allows AMD to offer integrated infrastructure for chip and software deployments, while the two companies will collaborate on physical data-centre design.
Options markets are pricing a move of ~9% following the print, setting the stage for a big day.
