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AMD Q3 Preview: EPS Jumps 30% YoY, Close Gap with Nvidia?

Stock SpotlightTuesday, Oct 29, 2024 6:11 am ET

1min read

AMD will release its Q3 earnings report on October 29th, after the U.S. markets close. Wall Street analysts project that AMD will report earnings of $0.91 per share, marking a 30% year-over-year increase, with revenues expected at $6.71 billion—a 15.7% increase from the same period last year.

This report is particularly critical for analysts assessing AI demand trends. As Nvidia's primary competitor, AMD's GPUs play an essential role in AI training infrastructure. With Nvidia's earnings report on the horizon, AMD's results offer a useful benchmark.

Although AMD has significantly underperformed Nvidia year-to-date, this could be an opportunity to turn the tables.

Data Center Growth is Key

Analysts predict AMD's data center revenue will reach a record $3.52 billion for Q3. In July, CEO Lisa Su expressed confidence in strong revenue growth for the year's second half, driven by demand for Instinct, EPYC, and Ryzen processors.

Earlier this month, AMD launched its latest data center AI chip, the Instinct MI325X, and investors are keen to see its performance.

Goldman Sachs analyst Toshiya Hari pointed to sustained growth in AI infrastructure capital expenditure, a recovery in server CPUs, and AMD's ongoing market share gains. AMD's x86 server CPU market share rose to 34% by Q2 2024 from less than 20% in early 2022, and Goldman Sachs expects AMD's next-generation server CPUs could further extend its edge over Intel Corp.

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