AMD Q3 Preview: The Market Is Watching OpenAI, I'm Watching EPYC

Advanced Micro Devices receives a Strong Buy rating, with valuation now at 33x 2027 earnings, 22% below its high, despite an improved earnings outlook. Market concerns center on AI customer spending, but I see AMD's EPYC server CPU business—forecasting a $220B market—as a major, underappreciated growth driver. Fourth-quarter guidance is key; a midpoint near $17B revenue and >70% server CPU growth outlook would reinforce the bullish thesis.