Superior Micro Units, Inc. (NASDAQ: AMD) delivered a file efficiency in the latest quarter and issued bullish steering, fueled by its quickly increasing knowledge heart AI phase. The chipmaker continues to speculate closely in its future, prioritizing a broader knowledge heart footprint and AI accelerator roadmap.
AMD’s inventory has made sturdy good points this yr, rising 68% over the previous six months, though momentum has moderated in current weeks following the sharp rally. Wall Avenue stays optimistic, with analysts projecting an extra 32% upside over the following twelve months, underscoring confidence within the firm’s long-term progress prospects. Nonetheless, the tempo of earnings and money movement enlargement has lagged the inventory’s worth appreciation, suggesting that a lot of the anticipated progress could already be priced in. This divergence raises issues that the shares may very well be buying and selling at an elevated valuation.
Q3 Outcomes Beat
For the third quarter, AMD reported adjusted earnings of $1.20 per share, in comparison with $0.92 per share in the identical interval of 2024. On a reported foundation, web revenue was $1.24 billion or $0.75 per share in Q3, vs. $771 million or $0.47 per share within the prior-year interval. Driving the bottom-line progress, Q3 revenues elevated to $9.25 billion from $6.82 billion within the comparable quarter final yr. Each income and earnings exceeded analysts’ estimates. In fiscal 2025, whole income is anticipated to achieve round $34 billion, representing a 26% CAGR over the previous decade.
From AMD’s Q3 2025 Earnings Name:
“Trying forward, we stay on monitor to launch our next-generation 2-nanometer Venice processors in 2026. Venice Silicon is within the labs and performing very effectively, delivering substantial good points in efficiency, effectivity, and compute density. Buyer pull and engagement for Venice are the strongest we have now seen, reflecting our aggressive positioning and the rising demand for extra knowledge heart compute. A number of cloud OEM companions have already introduced their first Venice platforms on-line, setting the stage for broad resolution availability and cloud deployments at launch.”
Outlook
The file efficiency displays sturdy demand for the corporate’s EPYC CPUs and Ryzen processors in knowledge facilities and PCs, mixed with its important AI-focused investments. In a current assertion, the AMD management mentioned it targets roughly 35% income CAGR by way of the following three to 5 years, with the information heart enterprise rising an estimated 60%. It’s searching for an adjusted working margin of above 35% and adjusted earnings per share of greater than $20 for that interval.
Whereas AMD is accelerating its AI momentum by way of improvements just like the MI300X and strategic partnerships with hyperscalers, it continues to face stiff competitors from Nvidia, which dominates the AI chip market with roughly 85–90% share. Nvidia’s entrenched CUDA ecosystem creates a robust community impact, making it troublesome and expensive for purchasers to modify to AMD—regardless that the latter’s {hardware} is very superior and more and more suitable. The corporate additionally faces competitors from tech majors like Alphabet and Amazon, that are growing their very own customized AI accelerator chips.
The common worth of AMD shares over the previous 12 months is $150.16. The inventory has gained round 6% previously 30 days, outperforming the S&P 500 index. The worth has greater than doubled previously seven months.
