After one of the worst days for chip stocks in months, all eyes turn to AMD on Tuesday evening — and to a single number that will either calm the market or confirm its fears.
Key Points
- AMD reports third-quarter results on Tuesday 3 November after the US close, with a call at 5pm Eastern.
- Wall Street expects revenue of about $13.1 billion, up roughly 42% year on year, and adjusted earnings of about $1.94–$1.95 a share.
- AMD’s own guidance was about $13.0 billion, plus or minus $300 million, at a non-GAAP gross margin of about 56%.
- AMD shares fell 10.9% on Friday 30 October to $504.80 after an Intel PC warning dragged chip stocks down; chip stocks lost more than $400 billion of market value on Monday, according to one market report.
Why this report matters so much
AMD is not just another chip company. Its processors and AI accelerators sit at the centre of the artificial-intelligence build-out, and its results are read as a health check on the whole AI trade — the same trade that has driven stock markets for two years and that investors are now questioning.
The second quarter set a high bar: revenue of $11.54 billion, up 50%, with the data-centre business more than doubling to $6.72 billion, client revenue up 23% and gaming down 31%, and non-GAAP earnings of $1.66 a share. Tuesday’s expected $13.1 billion would be another step up from there — but after Friday’s sell-off, merely meeting expectations may not be enough.
The number that really counts
Experienced watchers say the headline figures matter less than the outlook. The consensus for fourth-quarter guidance is cited at about $16.3 billion, and investors will listen for updates on Helios and MI450 rack shipments — the next generation of AI hardware — as well as on the agreements AMD has signed with OpenAI and Meta for up to 6 gigawatts of computing capacity each.
Those deals are the reason AMD’s story still commands attention even after a bruising week: they suggest demand for its AI hardware extends well beyond the current quarter. But they are also the reason the stakes are high — if guidance disappoints, it will be read as evidence that the AI boom is cooling, not just that one company had a soft quarter.
What happens next
Results land after the closing bell, with the earnings call at 5pm Eastern. The market’s verdict will be instant — and it will set the tone for the rest of the week’s technology earnings and for a chip sector still nursing Monday’s losses.
Related coverage: AI build-out · Business · AI industry
Sources
- Zacks — Zacks
- Investopedia — Investopedia