Advanced Micro Devices is targeting 25% year-over-year revenue growth in its upcoming fourth-quarter report, driven primarily by strength in its data center segment. Demand for EPYC server processors and Instinct accelerators has risen sharply, with enterprise cloud customers expanding deployments of rack-scale AI clusters. AMD’s channel checks suggest that hyperscale operators are increasing purchase volumes to support both generative AI training and inference workloads, setting the stage for another quarter of material margin expansion and upside to consensus revenue estimates.

Several brokerages have moved Advanced Micro Devices to a Buy rating ahead of the Q4 release, citing robust AI accelerator uptake and sustained hyperscaler capital spending. The company has delivered five consecutive quarters of positive earnings revisions, and analysts expect a double beat on both revenue and EPS when results are announced. Management’s guidance for fiscal 2026 sales growth remains upbeat, and the recent approval to ship next-generation MI308 GPUs into China is projected to unlock an incremental $250 million in annual revenue once volume ramps in the second half of the year.

AMD’s newly announced multi-year deal to supply custom GPU clusters to OpenAI underscores its growing share of the AI infrastructure market. In the quarter ended September, AMD reported $9.25 billion in revenue, up 35.6% year-over-year, with gross margins recovering to 51.7%. Industry forecasts from Piper Sandler estimate that MI300X shipments to major cloud providers will accelerate in 2026, contributing over $1.2 billion in incremental revenue. Of 51 analysts covering the company, 40 rate it Buy or Strong Buy, with a consensus long-term target implying upside of roughly 15%.

Looking into calendar 2026, AMD expects combined CPU and GPU sales to grow by more than 35%, outpacing the Street’s 32% projection. New EPYC Genoa-X processors and the MI450x/MI455 GPU family are key drivers, with early wins from Oracle, OpenAI and Meta already secured. The company’s Helios rack-scale solution, which integrates CPU, GPU and networking in a turnkey package, has drawn commitments for over 10,000 nodes across hyperscale customers. These design wins and platform revenues underpin management’s confidence in delivering sustained double-digit operating leverage next year.