Advanced Micro Devices' Computing Demand Expected to Boost 4Q Sales -- Earnings Preview

Dow Jones02:52

By Katherine Hamilton

Advanced Micro Devices is scheduled to report its fourth-quarter financial results after the market closes on Tuesday. Here is what you need to know.

REVENUE: The chip maker is expected to report $9.67 billion in sales, compared with $7.66 billion in the previous fourth quarter, according to FactSet.

NET INCOME: The Santa Clara, Calif., company is expected to post a profit of $2.17 billion, compared with $482 million the year before, according to FactSet.

EARNINGS PER SHARE: Earnings are expected to come in at 84 cents a share, compared with 29 cents a share the prior year.

The stock has fallen 4.2% during the past three months and recently traded around $248.74.

WHAT TO WATCH

--Strong computing demand for servers and PCs is expected to allow AMD to beat estimates, Wedbush analysts Matt Bryson and Antoine Legault said in a note. AMD's valuation has hinged on assumptions about its AI opportunities, but strength in traditional CPUs will create some leeway for AMD to make progress on its AI plans.

--AMD is competing against Nvidia, which is bigger and has a much larger share of the chip market. But analysts think there is strong demand for a chip alternative to Nvidia. It will just be a matter of how well its chips can compare to Nvidia's in terms of scale, performance and yield, D.A. Davidson analyst Gil Luria said.

--AMD's MI350 chip is expected to keep ramping up throughout the first half, with MI450 set to launch in the second half of the year, Susquehanna analysts say. OpenAI has agreed to deploy 6 gigawatts of GPUs through 2030 with the initial 1 gigawatt deployment starting with the MI450 series in the second half.

--Investors have been keeping a close eye on how much AI-related companies are spending to keep up in the AI race. After the company reported last quarter shares declined, as investors are worried about an AI bubble.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 02, 2026 13:52 ET (18:52 GMT)

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Advanced Micro Devices' Computing Demand Expected to Boost 4Q Sales -- Earnings Preview

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