Advanced Micro Devices (AMD) gets its chance to rebound from last week's tech selloff when the company reports third-quarter financial results Tuesday after market close.
Analysts expect AMD to report third-quarter revenue of $13.09 billion. That's up from $9.25 billion in the third quarter of last year, according to data from market data.
The company has beaten analyst revenue estimates in 15 straight quarters.
The estimated revenue would mark a new quarterly record, surpassing the $11.54 billion reported in the second quarter.
Analysts expect AMD to report third-quarter earnings per share of $1.95, up from $1.20 last year.
The company has beaten analyst estimates for earnings per share in four straight quarters and in eight of the last 10 quarters overall.
What the Experts Are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods recognizes the timing of the company's earnings coming "with tech stocks suddenly on defense."
AMD stock fell 11% on Friday and shares are down 23.3% from all-time highs set in early October.
"Fundamentally, the growth story remains impressive," Woods said in a weekly newsletter.
The market expert highlights that AMD's second-quarter revenue was up by 50% year-over-year with Data Center segment revenue more than doubling.
"As we've seen across the AI trade, strong fundamentals haven't necessarily translated into higher stock prices. Tuesday's report will be another important test of investors' willingness to reward that growth."
On the technical side, Woods calls out the 100-day moving average near $529 and a 50-day moving average near $548 as upside targets.
Morgan Stanley analyst Joseph Moore maintained an Equal-Weight rating on AMD and raised the price target from $465 to $510 ahead of earnings.
"Expect very strong server CPU to at least compensate for PC headwinds," Moore said.
The analyst's comments come after Intel Corporation (INTC) stock got hit last week and the company provided a negative outlook for the PC market.
Moore said PCs represent around 20% of revenue for AMD and the data center segment will likely be more important on Tuesday.
"AMD has the benefit of being able to build products customers would prefer vs. Intel on basically any single digit node."
Here are other recent analyst ratings on AMD and their price targets:
- Susquehanna: Maintained Positive rating, raised price target from $620 to $650
- Wedbush: Maintained Outperform rating, with price target of $600
- Citigroup: Maintained Buy rating, raised price target from $575 to $800
The Key Items to Watch
AMD's earnings report could serve as a bellwether for the semiconductor sector this week, following the recent selloff.
The good news for the company may be its diversification and recent growth from data center-related revenue.
In the second quarter, Client and Gaming revenue was up 6% year-over-year and Embedded revenue was up 19% year-over-year. Data Center revenue grew 107%, helping the company set quarterly records.
The company highlighted the momentum heading into the second half of the year.
AMD has posted four straight double beats with revenue beating estimates for 15 consecutive quarters.
Another double beat and strong fourth-quarter guidance could boost shares and help them recover from last week's selloff.
The big question is whether the report will be enough to offset the selloff.
Where AMD Stock Stands
AMD stock is trading near flat at $505.12 on Monday versus a 52-week trading range of $188.22 to $658.52. AMD shares are up 125.7% year-to-date in 2026.
