Get ready for a thrilling ride as we dive into the world of AMD's Q3 earnings preview, where AI momentum is the star of the show! But here's where it gets controversial... While AMD's partnership with OpenAI and Oracle has been a game-changer, some analysts are questioning the sustainability of its growth. Will AMD's AI chip deals truly fuel its earnings, or is it just a fleeting trend? Let's find out!
AI's Impact on AMD's Earnings
AMD's collaboration with OpenAI and Oracle has been a major win, with the company set to supply up to 6 gigawatts of GPUs for AI data centers. This partnership is expected to bring in tens of billions in revenue, significantly boosting AMD's earnings and solidifying its position as a key player in AI infrastructure. But is this a one-time windfall, or a sustainable growth driver?
AMD's Data Center Business Expansion
AMD's data center business is set to expand with the introduction of MI350 GPUs in H2 2025 and the next-gen MI400 series targeted for 2026. These advancements promise up to a 10x performance boost for advanced AI models, further cementing AMD's position in the market. But will this growth be enough to sustain its earnings in the long run?
AMD's Q2 2025 Revenue and Strong Execution
In Q2 2025, AMD's revenue rose 32% YoY to $7.7 billion, led by record EPYC and Ryzen sales. Strong execution boosted client average selling prices by 42% YoY, as premium products and greater commercial uptake outpaced the broader PC market. But will this momentum continue in Q3, or is it a one-time boost?
Acquiring ZT Systems and the U.S. Department of Energy Partnership
Acquiring ZT Systems enhances AMD's rack-scale design capabilities for AI, enabling more integrated solutions for large-scale deployments. Additionally, the U.S. Department of Energy's partnership with AMD on a $1 billion project to build two supercomputers will accelerate research in nuclear power and fusion, drug development, and national security. But will these partnerships be enough to sustain AMD's earnings growth?
Analysts' Expectations and Technical Analysis
Analysts are optimistic about AMD's Q3 earnings, with some expecting results near the $9B high end of guidance. However, technical analysis suggests that AMD's stock price has been trending upward within a rising channel, with a base case post-earnings pullback to test $239–$236 (channel support). But will this be enough to sustain its growth, or is it a sign of a potential slowdown?
AMD's Seasonality Chart
Since 2006, AMD has seen November close with an 8.9% gain in 65% of years and December with a 2.6% gain in 42% of years. But will this seasonality continue, or is it a sign of a changing market dynamic?
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Disclaimer
This article is written for informational purposes only and does not constitute investment advice. All assets are highly risky, and any investment decision belongs to the investor. We do not provide any investment advisory services.
