AMD Forecasts AI Growth Ahead of November Earnings Report

Advanced Micro Devices (AMD) will report its third-quarter financial results on November 3. The company provided revenue guidance between $12.7 billion and $13.3 billion, with an expected non-GAAP gross margin of approximately 56%. While the data center segment grew to $6.7 billion in the second quarter of 2026, management expects year-over-year growth to slow due to tougher comparisons.

Advanced Micro Devices shares rose 3.6% on Monday following a reiterated buy rating and $675 price target from TD Cowen. Analysts cited the adoption of agentic AI and production inference workloads as primary drivers for a resurgence in CPU demand. Other institutions have issued positive outlooks, with Citigroup raising its price target to $800 and both Stifel and Cantor Fitzgerald setting targets of $700.

CEO Lisa Su detailed a ramp-up schedule for Helios, the company's rack-scale AI server system, starting in the third quarter with significant increases expected through 2027. The company has doubled its estimated total addressable market to $220 billion and forecasts that AI data center CPU sales will increase by 70% in 2027. This momentum follows a volatile period where the stock declined approximately 19% from its October 6 record close of $649.42.