Wedbush Sees AMD Server CPUs as Likeliest Source of Earnings Upside

Wedbush Securities sees stronger demand for AMD server CPUs as the likeliest source of potential upside to fiscal third-quarter estimates, putting AI computing in focus ahead of the chipmaker’s Nov. 3 earnings release.

AI-related workloads could increase demand for server processors. If demand exceeds expectations, AMD’s revenue and margins could come in above current estimates. AMD reports a combined Data Center segment, so its quarterly results will not isolate server CPU sales or margins.

AMD’s Helios rack-scale AI platform is another focus, along with progress on planned GPU deployments. Updates on those plans would concern future shipments and projects, distinct from the quarter’s reported performance.

AMD’s data center business generated $6.7 billion in the quarter ended June 27, up 107% from a year earlier. Demand for EPYC processors and Instinct GPUs contributed to that growth, but the combined total did not identify the CPU share.

AMD’s fiscal third-quarter earnings report is due Nov. 3.