This article first appeared on GuruFocus.
Advanced Micro Devices Inc. (AMD, Financials), a semiconductor giant, is approaching third-quarter earnings with investors looking for guidance as demand for artificial intelligence and data-centers continues to be robust.Wall Street is looking for earnings of $1.94 a share, up 61.7% from a year ago. Revenue is expected to climb 41.5% to $13.09 billion.Expectations are already running high after AMD’s stock surged more than 135% this year.Analysts think server CPUs might provide upside. Wedbush said demand for agentic AI continues to outperform supply, which should bolster greater sales and margins for server processors.According to GF analyst Jeff Pu, AMD is expected to have a positive view for its data center sector with server CPU sales projected to climb more than 100% in 2027 and 50% in 2028.AMD is also benefiting from its MI450 and MI455X accelerator roadmap, increased wafer supply, and broader demand across CPUs, GPUs, networking and software.The issue is the value is already indicating a positive forecast for AI.The next driver will be Tuesday’s earnings release and whether management boosts projections for 2027 data-center expansion.