Advanced Micro Devices Expected to Deliver 'Beat-and-Raise' Q3, Analyst Says

Advanced Micro Devices (AMD, Financials) is heading into its third-quarter earnings with plenty of momentum and growing expectations that it could deliver another solid performance.

Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating and a $250 price target, saying he expects AMD to post a beat-and-raise quarter. He pointed to steady demand for server and PC chips, along with stronger adoption of AMD's AI products, as key drivers.

Cassidy said attention will likely focus on AMD's latest Instinct GPUs and new Helios rack-scale platform two products designed to compete directly in the booming AI data center space. He expects management to strike an upbeat tone during the Q3 call, with AI now making up an estimated 21% of AMD's total revenue.

While shares dipped about 3% this week, they've still climbed roughly 90% in 2025, fueled by optimism around AMD's expanding role in AI computing. Cassidy believes that momentum could build further after the company's Analyst Day on Nov. 11, where investors will hear more about AMD's roadmap for 2026.

Wall Street remains broadly positive. AMD holds a Moderate Buy consensus based on 29 Buy and 10 Hold ratings, with an average price target of $249.92 about 9% upside from current levels.