AMD Stock Faces Its Next Big Catalyst on November 4. Here’s What This Top Analyst Expects

AMD has transitioned from a peripheral player to a central force in the AI revolution, fueled by a transformative partnership with OpenAI. The collaboration has not only redefined the competitive landscape but also propelled AMD's stock to record highs. This marks a stark reversal from earlier perceptions of the company as a non-contender in the AI chip arena.

UBS analyst Timothy Arcuri, ranked among the top 5% of Wall Street experts, anticipates third-quarter results nearing the high end of AMD's $9 billion guidance. The upside is expected to stem from robust server and client CPU performance, with server strength potentially boosting gross margins. Arcuri maintains revenue and adjusted EPS forecasts at $8.94 billion and $1.26, respectively, both above consensus estimates.

For the fourth quarter, AMD could issue guidance as high as $9.5 billion, though Arcuri's model remains conservative. The November 4 earnings report now stands as a critical test of whether AMD's AI-driven momentum can sustain its market revaluation.