Many tech companies have shared their third-quarter results, but there are still several intriguing updates to come. Advanced Micro Devices (NASDAQ:AMD) has made notable strides in the AI space recently and is expected to grab attention when it announces its quarterly results on Tuesday, November 4.
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According to Christopher Rowland from Susquehanna, an analyst with a strong reputation on Wall Street, AMD’s MI350 and the upcoming MI450 series of AI accelerators will likely be key focus areas.
“The ramp-up of MI350 and the potential of the MI450 over the next year will be crucial points of discussion,” Rowland noted as the company prepares for its results.
In terms of revenue breakdown, data center GPUs account for 50%, with Rowland predicting a significant increase in the MI350 series during the latter half of this year. While many investors are anticipating a robust second half, the degree of potential growth in data center/gaming performance is somewhat uncertain and remains a hot topic. Rowland believes that the Street’s expectations for the fourth quarter might even be surpassed.
Looking beyond 2025, investors are particularly excited about AI advancements following the OpenAI announcement of 6GW, with the first gigawatts expected in late 2026. Rowland estimates around $15 billion per gigawatt, primarily contributing to growth in the latter half of 2026. Other positive indicators include Oracle’s AI supercluster, expected to feature 50,000 MI450 GPUs launching in Q3 2026, AMD’s recent supercomputer contracts, and the HUMAIN partnership, which should also bolster AMD’s position. The MI400 is reportedly “on track” for its 2026 launch, attracting significant interest from various customers.
Rowland’s insights suggest that the EPYC data center CPU will demonstrate strong performance this quarter and ongoing success, largely due to market share gains and increased enterprise adoption by OEMs like Dell.
In AMD’s client division, which makes up 25% of its sales, there has been a continued pull for customs-related PCs into this year’s first half, with third-quarter ODM construction outperforming expectations. Intel has also seen a rebound in its client sector, likely benefiting from similar tariff issues. However, AMD previously suggested a weaker second half for clients, with Rowland expecting just a 1% growth for the fourth quarter. His analysis of Susquehanna’s 2025 PC-Signals data shows that while AMD has lost some ground in laptop processors, it gained in desktops.
In the embedded market, which represents 15%, demand is slowly recovering but Rowland notes there is still some volatility due to high inventory levels in certain areas. Turning to the gaming segment, which comprises 10%, PC-SIGNals data indicates mixed results: AMD has lost a bit of ground in the aftermarket graphics card market, although GPU prices have increased by 3.3% sequentially.
“In summary,” Rowland said, “We anticipate slightly better results driven by PC demand, and we foresee improvements in Q4 from strong server sales and the upswing from MI350.”
Ultimately, Rowland has assigned a positive (Buy) rating to AMD stock, raising the price target from $210 to $300, indicating a potential rise of about 15% in the near future.
Across the board, there are 28 buy ratings and 10 hold recommendations, leading to a Moderate Buy consensus. Interestingly, the stock has already surpassed the average price target of $252.42. As earnings approach, investors are eager to see if the Street will update its forecasts to align with the recent rally.
