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Can Strong Data Center Revenues Boost AMD's Topline in Q4 Earnings?
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Key Takeaways
AMD expects strong Q4 Data Center growth from EPYC processors and Instinct accelerators.
Cloud hyperscalers tripled EPYC usage, now totaling over 1,350 public instances globally.
Oracle and partners deploy AMD-powered AI superclusters and private cloud platforms.
Advanced Micro Devices (AMD - Free Report) is expected to have benefited from strong Data Center revenues in the fourth quarter of 2025. The company is set to release results on Feb. 3, 2026.
The company continues to strengthen its footprint in the enterprise data center arena by leveraging EPYC processors and Instinct accelerators amid significant competition from NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) . On a sequential basis, AMD’s topline is expected to benefit from double-digit growth in the Data Center segment with strong growth in server and the continued ramp of the company’s MI350 Series GPUs.
Click here to know how AMD’s overall fourth-quarter performance is likely to be.
AMD’s Data Center Revenues to Ride on Enterprise Adoption
In the enterprise, AMD’s EPYC has been gaining traction with an expanding clientele in technology, automotive, manufacturing, financial services, and public sector domains. In the third quarter of 2025, the company reported record data center revenues of $4.3 billion, marking a 22% year-over-year increase. This growth was fueled by the rapid adoption of AMD’s 5th Generation EPYC Turin processors, which accounted for nearly half of the overall EPYC revenue during the third quarter.
The adoption of EPYC by the largest cloud hyperscalers has been increasing significantly. In the third quarter of 2025, the adoption of AMD’s EPYC processors in the cloud has surged, with large businesses tripling their usage year over year. Hyperscalers such as Google, Microsoft Azure, and Alibaba have expanded their EPYC-powered offerings, launching more than 160 new instances in the third quarter of 2025 alone. AMD now boasts over 1,350 public EPYC cloud instances globally, a nearly 50% increase from the previous year.
AMD’s to-be-reported quarter’s Data Center results are also expected to benefit from a rich partner base that includes the likes of OpenAI, Cohere, IBM, Oracle (ORCL - Free Report) , Google, HPE, Dell Technologies, Lenovo, Super Micro, and others.
In the third quarter of 2025, AMD announced that Oracle Cloud Infrastructure will launch the first publicly available AI supercluster using AMD’s Helios rack design, featuring Instinct MI450 GPUs, EPYC Venice CPUs, and Pensando Vulcano networking. The initial deployment includes 50,000 GPUs starting third-quarter 2026. Oracle also announced Compute Cloud@Customer X11 and Private Cloud Appliance X11 platforms powered by 5th Gen EPYC CPUs.
The Zacks Consensus Estimate for fourth-quarter Data Center revenues is pegged at $4.86 billion, indicating impressive year-over-year growth of 26.04%.
AMD Faces Stiff Competition
NVIDIA is benefiting from the strong growth of AI and high-performance, accelerated computing. NVIDIA’s newer Hopper 200 and Blackwell GPU platforms are being rapidly adopted as customers work to grow their AI infrastructure.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators (XPUs). Broadcom expects accelerated demand for XPUs in the back half of 2026 as hyperscalers focus more on inference, along with frontier model training.
Image: Bigstock
Can Strong Data Center Revenues Boost AMD's Topline in Q4 Earnings?
Key Takeaways
Advanced Micro Devices (AMD - Free Report) is expected to have benefited from strong Data Center revenues in the fourth quarter of 2025. The company is set to release results on Feb. 3, 2026.
The company continues to strengthen its footprint in the enterprise data center arena by leveraging EPYC processors and Instinct accelerators amid significant competition from NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) . On a sequential basis, AMD’s topline is expected to benefit from double-digit growth in the Data Center segment with strong growth in server and the continued ramp of the company’s MI350 Series GPUs.
Click here to know how AMD’s overall fourth-quarter performance is likely to be.
AMD’s Data Center Revenues to Ride on Enterprise Adoption
In the enterprise, AMD’s EPYC has been gaining traction with an expanding clientele in technology, automotive, manufacturing, financial services, and public sector domains. In the third quarter of 2025, the company reported record data center revenues of $4.3 billion, marking a 22% year-over-year increase. This growth was fueled by the rapid adoption of AMD’s 5th Generation EPYC Turin processors, which accounted for nearly half of the overall EPYC revenue during the third quarter.
Advanced Micro Devices, Inc. Revenue (TTM)
Advanced Micro Devices, Inc. revenue-ttm | Advanced Micro Devices, Inc. Quote
The adoption of EPYC by the largest cloud hyperscalers has been increasing significantly. In the third quarter of 2025, the adoption of AMD’s EPYC processors in the cloud has surged, with large businesses tripling their usage year over year. Hyperscalers such as Google, Microsoft Azure, and Alibaba have expanded their EPYC-powered offerings, launching more than 160 new instances in the third quarter of 2025 alone. AMD now boasts over 1,350 public EPYC cloud instances globally, a nearly 50% increase from the previous year.
AMD’s to-be-reported quarter’s Data Center results are also expected to benefit from a rich partner base that includes the likes of OpenAI, Cohere, IBM, Oracle (ORCL - Free Report) , Google, HPE, Dell Technologies, Lenovo, Super Micro, and others.
In the third quarter of 2025, AMD announced that Oracle Cloud Infrastructure will launch the first publicly available AI supercluster using AMD’s Helios rack design, featuring Instinct MI450 GPUs, EPYC Venice CPUs, and Pensando Vulcano networking. The initial deployment includes 50,000 GPUs starting third-quarter 2026. Oracle also announced Compute Cloud@Customer X11 and Private Cloud Appliance X11 platforms powered by 5th Gen EPYC CPUs.
The Zacks Consensus Estimate for fourth-quarter Data Center revenues is pegged at $4.86 billion, indicating impressive year-over-year growth of 26.04%.
AMD Faces Stiff Competition
NVIDIA is benefiting from the strong growth of AI and high-performance, accelerated computing. NVIDIA’s newer Hopper 200 and Blackwell GPU platforms are being rapidly adopted as customers work to grow their AI infrastructure.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators (XPUs). Broadcom expects accelerated demand for XPUs in the back half of 2026 as hyperscalers focus more on inference, along with frontier model training.
Zacks Rank
AMD currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.