Can Strong Data Center Revenues Boost AMD's Top Line in Q3 Earnings?

Advanced Micro Devices AMD is expected to have benefited from strong Data Center revenues in the third quarter of 2025, set to be released on Nov. 4. 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 and Broadcom AVGO. 

Click here to know how AMD’s overall third-quarter performance is likely to be.

AMD’s Data Center Revenues to Ride on Enterprise Adoption

In enterprise, AMD’s EPYC has been gaining traction with an expanding clientele in technology, automotive, manufacturing, financial services and public sector domains. The launch of the EPYC 4005 series is expected to boost AMD’s footprint among small and medium businesses as well as hosted IT service customers. 

Adoption of EPYC by the largest cloud hyperscalers has been increasing significantly. In the second quarter of 2025, more than 100 new AMD-powered cloud instances were launched, including multiple Turin instances from Google and Oracle ORCL. At the end of the second quarter of 2025, roughly 1,200 EPYC cloud instances were available globally, a key driver behind the enterprise adoption of EPYC in the cloud. In on-premises, HPE, Dell Technologies, Lenovo and Super Micro launched 28 new Turin platforms in the reported quarter. The trend is expected to have driven AMD’s top-line growth in the to-be-reported quarter.
 

Advanced Micro Devices, Inc. Revenue (TTM)

Advanced Micro Devices, Inc. revenue-ttm | Advanced Micro Devices, Inc. Quote

Apart from EPYC, AMD’s prospects are driven by strong demand for Instinct accelerators. In June 2025, AMD unveiled its new Instinct MI350 Series GPUs and open rack-scale AI infrastructure, showcasing significant advancements in AI performance and energy efficiency alongside major industry partners. AMD stated that its MI355 matches or exceeds NVIDIA’s B200 in critical training and inference workloads. MI355 delivers comparable performance to GB200 for key workloads at lower cost and complexity. 

The MI350 series, along with AMD CPUs, GPUs and NICs, expands system-level capabilities to support deployments. Oracle is building a 27,000-plus node AI cluster combining MI355X accelerators, fifth-gen EPYC Turin CPUs and Pollara 400 SmartNICs. 

AMD’s to-be-reported quarter Data Center results are also expected to have benefited from a rich partner base that includes the likes of OpenAI, Cohere, IBM, Oracle, Google, HPE, Dell Technologies, Lenovo, Super Micro and others. The Zacks Consensus Estimate for third-quarter Data Center revenues is pegged at $4.18 billion, indicating impressive year-over-year growth of 17.6%.

AMD Faces Stiff Competition

NVIDIA is benefiting from the strong growth of AI and high-performance, accelerated computing. The company’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). AVGO 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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