AMD beats Q3 estimates, analysts bullish on server growth

AMD beat Wall Street expectations for third-quarter earnings and revenue, reporting adjusted earnings of $2.09 per share against $1.95 expected, and revenue of $13.38 billion versus the $13.09 billion consensus. CEO Lisa Su forecast server revenue to double by 2027, with data center AI growth accelerating faster than previously projected. Shares rose 4% in premarket trading after a 24% monthly decline, as analysts highlighted strength in data center and server CPUs offsetting PC weakness. Morgan Stanley raised its price target to $550, while Goldman Sachs, Barclays, JPMorgan, Citi, Wells Fargo, and UBS issued varied ratings and targets, citing robust AI demand and supply advantages. Analysts noted AMD's 2027 revenue growth outlook of over 80%, driven by data center expansion, with gross margin guidance of 55% seen as encouraging. Concerns about AI spending sustainability and PC softness remain, but most firms expressed confidence in AMD's execution and competitive positioning.