Advanced Micro Devices Revenue Driven by Server Upgrade Activity, AI Spillover, UBS says

Advanced Micro Devices (AMD) is benefiting from its server and client CPU, with the former possibly contributing to wider gross margins, UBS analysts said in a note to clients Monday.

"We see an upside bias for FQ3 with results likely skewed toward the $9B

high-end of guidance," the analysts said.

The analysts said they "remain comfortable" with their Q4 revenue forecast of approximately $9.3 billion, which they noted is $200 million more than the consensus Street view.

AMD's revenue is being "driven by renewed server upgrade activity and some spillover from AI into traditional compute infrastructure as the industry embarks on new strategies to prepare for more AI processing in the data processing market," the analysts said.

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