AMD Forecasts Soaring Revenues and Margins, Teases Groundbreaking AI Chips

In a positive earnings report, AMD announced its Q3 2025 results on November 4, 2025. The company saw a 36% year-over-year increase in revenue, reaching $9.25 billion, while gross margins expanded to 52%, up 2 percentage points.

During the earnings call, AMD CEO Lisa Su provided an update on the company's AI-focused initiatives. She stated that the development of both the MI400 series GPUs and the 'Helios' rack system is progressing rapidly, supported by deep technical engagements with a growing set of hyperscalers, AI companies, and OEM/ODM partners. This suggests AMD is positioning itself to enable large-scale AI deployments in the coming year.

Looking ahead, AMD provided an outlook for Q4 2025, projecting revenue of approximately $9.6 billion and a non-GAAP gross margin of around 54.5%. The company's financial targets do not include any revenue from the AMD Instinct MI308 shipments to China.

Ahead of AMD's 2025 Financial Analyst Day on November 11, 2025, Bank of America analyst Vivek Arya and his team shared their optimistic view on the company's long-term prospects. The analysts estimate AMD's earnings per share (EPS) power could reach $15 to $18 by 2030, driven by the company's anticipated announcements of a new AI accelerator with a total addressable market of $750 billion to $850 billion, as well as overall sales growth targets of 25-30% compound annual growth rate and gross margins in the 53-55% range.