AMD vs. QCOM: Which Chip Stock Is the Better Choice Before Upcoming Earnings, According to Experts?

November 1, 2025

Chip Stocks Gain Attention Amid AI Demand

Chip stocks are gaining attention due to the surge in demand fueled by the artificial intelligence (AI) boom. While Nvidia (NVDA) dominates the AI chip landscape, competition is heating up from companies like Advanced Micro Devices (AMD) and Broadcom (AVGO). Investors are particularly focused on the upcoming earnings reports from AMD and Qualcomm (QCOM), eager for insights into their AI strategies. To aid in understanding the market, we used TipRanks’ stock comparison tool to see how AMD and Qualcomm stack up against each other, as viewed by Wall Street analysts.

Advanced Micro Devices (NASDAQ:AMD) Stock

Advanced Micro Devices has seen a remarkable stock increase of 58.3% over the past month, marking a 112% rise year-to-date. This surge has been driven by optimism surrounding AMD’s new AI GPU (graphics processing unit) and a significant partnership with OpenAI that aims to create 6 gigawatts of AI capacity. Additionally, the stock rallied after AMD’s deal with Oracle’s OCI (Oracle Cloud Infrastructure) for 50,000 AI chips.

The company is set to announce its third-quarter financial results after the market closes on November 4th. Analysts anticipate AMD will report earnings per share (EPS) of $1.17 for the third quarter, reflecting a 27.2% increase compared to last year. Revenue is projected to rise over 28% to roughly $8.76 billion.

Is AMD Stock a Buy or Sell?

Before the financial results, UBS analyst Timothy Arcuri maintained a buy rating on AMD, setting a price target of $265. He mentioned that, similar to Intel (INTC), they expect favorable results in the third quarter, leaning toward the higher end of AMD’s forecast of $9 billion. According to Arcuri, the demand from both server and client CPU sectors should boost the company, with server strength likely providing some increase in gross margins. He estimates data center GPU revenue to be around $1.7 billion for this quarter and projects third-quarter revenue at $8.94 billion with adjusted EPS of $1.26.

Looking ahead to the fourth quarter, Arcuri feels confident about predictions of approximately $9.3 billion in sales. However, he believes new server upgrades and a shift in AI impact on traditional computing may help AMD reach $9.5 billion. He expects customer revenue to be stable or slightly up, which is an improvement over typical seasonal patterns. The estimated data center GPU revenue for Q4 is $2.4 billion, rising by about $700 million from Q3 due to demand spikes from companies like Meta (META) and Oracle.

Although AMD’s Q1 2026 forecast might reflect usual seasonal trends, Arcuri anticipates an optimistic multi-year outlook for its data center GPU segment.

Overall, Wall Street’s consensus for AMD is rated as a Moderate Buy, with 29 buy recommendations versus 10 holds. The average price target sits at $252.42, indicating a slight downside of 1.4% from current values.

Qualcomm (NASDAQ:QCOM) Stock

Qualcomm is preparing to report its fourth-quarter fiscal 2025 results on November 5th. The stock has appreciated around 18% since the year began, particularly after the announcement of new AI chips—AI200 and AI250—scheduled for release in 2026 and 2027. Qualcomm also formed a partnership with a Saudi-backed AI company, Humain, to deploy a 200-megawatt accelerator card, which aligns with Saudi Arabia’s AI aspirations.

These developments have fueled investor enthusiasm as Qualcomm aims to expand its footing in the AI chip market. Historically reliant on smartphones, the company is diversifying into automotive and IoT sectors. The release of new AI chips could significantly enhance Qualcomm’s business prospects, especially amid the rapid growth of data centers.

Expectations for Qualcomm’s adjusted EPS stand at $2.87, reflecting a 6.7% year-over-year increase, while sales are anticipated to rise by 5% to $10.75 billion.

Is QCOM Stock a Good Buy Now?

Following the AI chip announcement, Bank of America analyst Tal Riani maintained a “buy” rating on Qualcomm, setting a target price of $200. He mentioned that this strategy signals a much-needed diversification away from the stagnant smartphone segment, which makes up a large portion of Qualcomm’s revenue. Riani noted that the AI chip initiative meets the demands of a rapidly growing market projected to reach $114 billion by 2030, where major clients are seeking alternatives to Nvidia. However, he did express some caution, suggesting that the 2026 opportunities related to the new AI chip might be limited to a single deal, requiring effective execution by Qualcomm.

Moreover, Riani pointed out that Qualcomm’s recent stock underperformance is largely attributable to forecasted revenue dips related to Apple’s transition to in-house modem chips and potential losses in business from Samsung. Still, he considers Qualcomm’s undervaluation appealing given its expanding addressable market and prospects for price appreciation.

Currently, Wall Street rates Qualcomm stock as a Moderate Buy, supported by 7 buy ratings and 3 holds. The average price target stands at $194.29, suggesting about a 7.4% upside potential.

Conclusion

At present, Wall Street remains cautiously optimistic about Advanced Micro Devices and Qualcomm. Some analysts argue that AMD’s strong performance this year may already reflect heightened expectations for its AI chips. Meanwhile, there’s notable upside potential for Qualcomm, especially following its recent AI chip announcements. The upcoming earnings reports from AMD and Qualcomm may serve as pivotal moments for both stocks as they continue to navigate the rapidly evolving AI landscape.