Advanced Micro Devices is set to report fourth-quarter results that analysts expect will show approximately 25% year-over-year revenue growth, driven primarily by its EPYC server processors and Instinct MI300 series GPUs. Data center revenue is forecast to account for roughly 40% of total sales, up from 33% a year earlier, as hyperscaler spending accelerates. Management has previously guided for mid-to-high-20% revenue growth for fiscal 2026, bolstered by contract wins with Oracle and Meta. Investors will watch gross margin trends closely, with prior quarters showing a rebound to the low 50% range thanks to improved yield on advanced process nodes and higher average selling prices for AI accelerators.

Several brokerages recently upgraded AMD to a Buy rating ahead of the earnings release, citing robust demand for its MI300X AI accelerators and sustained hyperscaler capital expenditure momentum. Analyst revisions point to a potential double earnings beat in Q4 and an upbeat full-year 2026 outlook. Additionally, the company has secured export licenses allowing shipment of next-generation MI308 chips into China, unlocking a significant incremental addressable market that was previously restricted. Management’s commentary on China reopening is expected to feature prominently, given that Greater China represented about 15% of AMD’s revenue in 2025.

In a landmark development, AMD secured a multi-year chip supply agreement with OpenAI, marking its first major partnership with a leading large language model provider. The deal is expected to contribute an incremental $500 million to $700 million in annual revenue starting in 2026 and validates AMD’s competitiveness against incumbent suppliers. In the third quarter of 2025, AMD reported $9.25 billion in total revenue, up 35.6% year-over-year, with gross margins recovering to 51.7%. Following the announcement, 40 out of 51 analysts maintain Buy or Strong Buy recommendations, with a consensus target implying roughly 15% upside potential based on current financial metrics.