Advanced Micro Devices (AMD) is expected to deliver Q4 results that top estimates, helped by solid server demand, with Q1 guidance likely to come in "slightly above consensus," RBC Capital Markets said Sunday in a report.
RBC is modeling Q4 revenue of $9.6 billion and non-GAAP earnings of $1.31 a share, about a 5% beat. For Q1, the firm expects management to guide slightly above the consensus of EPS at $1.23 on revenue of $9.4 billion.
Quarter-over-quarter growth should continue through H1, and China remains a source of potential upside, the report said.
RBC expects AMD to stay on schedule with its next-generation AI platform, despite recent concerns about wafer supply and building systems at full scale.
As major customers develop their own AI chips in 2026 and 2027, AMD may face some market-share pressure, the report said.
RBC maintained its sector perform rating on AMD stock with a $230 price target.
Q4 results are due Tuesday.
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