Semis · $AMD
AMD Reports Tuesday as Intel's Collapse Puts PC Weakness and AI Chip Demand Under the Microscope
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AMD guided to about $13 billion in third-quarter revenue; Intel's warning on a prolonged PC slowdown raises the stakes for its rival's results.
By Emmanuel Cruz ·
Advanced Micro Devices reports third-quarter results after the market closes on Tuesday, November 3, making it the next major test for chip stocks after Intel's record one-day plunge on Friday [1][2]. The company will hold its conference call at 5 p.m. ET the same day [1].
The results arrive at a sensitive moment for the sector. Intel shares closed down nearly 29% on Friday, their worst day since 1974, erasing nearly $140 billion in market value, according to Yahoo Finance [2]. The drop followed Intel's forecast of fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts had expected, and adjusted earnings of 25 cents a share against expectations of 43 cents [2].
The problem Intel described is centered on personal computers rather than data centers. In its third-quarter release, Intel reported revenue of $16.5 billion, up 21% from a year earlier, with its Data Center and AI unit up 78% to $7.3 billion while its client computing group fell 5% to $8.1 billion [3]. Chief financial officer David Zinsner said the company sees "the PC slowdown continuing at least through the first half of next year" [3]. Yahoo Finance reported that Intel blamed AI data centers for absorbing memory chips and pushing up prices for laptops and desktops, and that Intel expects PC shipments to fall about 12% this year and another 10% in 2027 [2].
That split matters for AMD, which sells both server processors and AI accelerators for data centers and processors for PCs. Its own most recent results showed how heavily it now leans on the data center. For the second quarter, AMD reported revenue of $11.5 billion, up 50% from a year earlier, and Data Center segment revenue of $6.7 billion, up 107% [4]. GAAP gross margin was 54%, and earnings were $1.38 a share on a GAAP basis and $1.66 on an adjusted basis [4]. Chief executive Lisa Su described it as a quarter with "record revenue and profitability" [4].
For the third quarter, AMD guided to revenue of about $13 billion, plus or minus $300 million, and an adjusted gross margin of about 56% [4]. Tuesday's report will show whether the company met that outlook, and its fourth-quarter guidance will be read closely for signs that higher memory prices and weaker PC demand are affecting its client business, as they did at Intel.
Investors will also be looking at data center growth after a broad technology selloff that also weighed on Alphabet and Amazon [2]. Intel's data center unit grew strongly even as its overall outlook disappointed [3], so the focus for AMD is likely to be on the pace of its AI accelerator and server CPU sales relative to any softness in PCs, along with margins as component costs rise.
Key items to watch on Tuesday are third-quarter revenue against the roughly $13 billion guidance, the data center segment's growth rate, gross margin relative to the 56% target, management's comments on PC demand and memory costs, and the revenue range it sets for the fourth quarter [4].
Sources:
[1] AMD, "AMD to Report Fiscal Third Quarter 2026 Financial Results", October 6, 2026. https://ir.amd.com/news-events/press-releases/detail/1300/amd-to-report-fiscal-third-quarter-2026-financial-results
[2] Yahoo Finance, "Intel stock plunges nearly 29%, its worst day since 1974", October 30, 2026. https://sg.finance.yahoo.com/news/intel-stock-plunges-nearly-30-briefly-on-pace-for-its-worst-day-since-1974-135526633.html
[3] Intel, "Intel Reports Third-Quarter 2026 Financial Results", October 29, 2026. https://www.intc.com/news-events/press-releases/detail/1786/intel-reports-third-quarter-2026-financial-results
[4] AMD, "AMD Reports Second Quarter 2026 Financial Results", August 4, 2026. https://www.sec.gov/Archives/edgar/data/0000002488/000000248826000121/q22026991.htm
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.