Advanced Micro Devices (AMD) is set to report its fourth-quarter earnings after the market close on Tuesday, February 3, 2026. Wall Street analysts anticipate strong results, with consensus estimates projecting revenue of $9.67 billion and adjusted earnings per share (EPS) of $1.32. This would represent significant growth from the year-ago quarter's $7.7 billion in revenue and $1.09 EPS.
The earnings report arrives at a pivotal moment for the AI chip market. HSBC analyst Frank Lee recently raised his price target for AMD to $335 from $300, maintaining a Buy rating. Lee highlighted agentic AI as a major catalyst for server CPU demand, suggesting AMD is well-positioned to capture a large share of this emerging opportunity. "We expect AMD to be a key beneficiary as the upside potential from server CPUs is not fully priced in," Lee wrote.
AMD's data center segment is expected to be a primary growth driver, with projections calling for Q4 revenue of $4.97 billion—a 29% year-over-year increase. The client segment (PC chips) is forecast at $2.9 billion, while the gaming business is expected to surge 52% to $855 million.
However, the company faces notable headwinds. A global memory shortage could impact PC makers and AMD's consumer chip business by forcing price increases. Geopolitical tensions between the U.S. and China also pose a risk to its operations in the world's largest semiconductor market. Furthermore, competition is intensifying: tech giants like Microsoft, Alphabet (Google), and Amazon are developing their own custom ASIC chips, while NVIDIA has signaled a move into the CPU space. Chinese firms like Huawei and Moore Threads are also closing the technology gap.
In a potentially positive development for AMD, a Reuters report indicated that OpenAI is exploring alternatives to NVIDIA's AI chips, a move that boosted AMD shares in after-hours trading and suggests potential for diversification in the AI accelerator market. AMD recently showcased its competitive edge at CES 2026, unveiling the Helios rack-scale server to rival NVIDIA's systems and detailing its MI500 series GPUs, which the company claims offer up to a 1,000x AI performance increase over its previous generation.
From a technical analysis perspective, some traders note that AMD's stock, which has rallied 114% over the past 12 months to around $246, has formed a double-top pattern near $266, suggesting a risk of a pullback post-earnings unless it breaks above the $266.75 resistance level.
