Advanced Micro Devices expects fiscal third-quarter revenue to rise about 41% year over year, setting a strong growth target as investors examine the financing burden behind AI infrastructure expansion.
AMD forecast revenue of about $13 billion, plus or minus $300 million, and non-GAAP gross margin of about 56%. In the fiscal second quarter, revenue was $11.536 billion, up 50% from a year earlier, while Data Center revenue rose 107% to $6.7 billion.
AMD shares fell 8.1% to $507.93 on Thursday, Oct. 22. The S&P 500 declined 1.2% and the Nasdaq Composite fell 2.6%. The Associated Press reported that investors were concerned about borrowing costs for data centers and AI chips, as well as high valuations for AI-related stocks.
In a Monday, Oct. 26, commentary, CNBC contributor Michael Khouw said AMD was the only company among those reporting in the next two weeks that met his screening criteria. His screen considered factors including growth, share performance, valuation and returns.
AMD has announced plans with Meta to deploy up to six gigawatts of its GPUs, with shipments for the first gigawatt scheduled to begin in the second half of 2026. A separate agreement with Anthropic covers up to two gigawatts, with deployment of the first gigawatt scheduled to begin in the first half of 2027. These are future deployment plans, not completed shipments.
Meta's Wednesday, Oct. 21, filing with the Securities and Exchange Commission said it expects to need capital for its AI growth plan. The company said non-voting Class C shares could support fundraising without reducing voting power, while future share issuance could still dilute shareholders economically. On Monday, Oct. 26, Meta filed offering materials covering $22.5 billion in Class A stock and 250 million depositary shares tied to mandatory convertible preferred stock.
Supply constraints have also surfaced elsewhere in the sector. Lam Research Chief Financial Officer Douglas Bettinger said near-term constraints limited Lam's December-quarter revenue outlook; his remarks concerned Lam's business and do not establish an AMD supply shortfall.
AMD is scheduled to report fiscal third-quarter results Tuesday, Nov. 3, after the market close, followed by a conference call at 5 p.m. ET.
