Intel’s recent 10-K filing suggests a potential upside for Advanced Micro Devices due to Intel’s server CPU market performance, specifically because Intel’s estimated server CPU shipment growth is lagging the overall market growth, indicating an opportunity for AMD to capture a larger share.Shares of the chipmaker have kicked off the new year on an upbeat note, climbing 16% on a year-to-date (YTD) basis as investor optimism around its business outlook grows.Advanced Micro Devices is a globally recognized se ...

Core Viewpoint - Advanced Micro Devices (AMD) faces pressure on its stock due to reports of Meta Platforms potentially investing billions in Google's AI chips, which could impact demand for AMD's GPUs [1][6][7]. Company Overview - AMD is a globally recognized semiconductor firm specializing in high-performance computing products, including AI accelerators, x86 microprocessors, and GPUs, with a market cap of $348.8 billion [3]. Recent Stock Performance - AMD shares have rallied 80.1% year-to-date but experienced a sharp pullback of 22.8% from an all-time high of $267.08 in November due to various investor concerns [2]. Financial Results - AMD reported record revenue of $9.25 billion for Q3 2025, exceeding Wall Street estimates by $500 million, with a year-over-year growth of 36% [12]. - The data center business grew 22% year-over-year to $4.3 billion, driven by demand for AMD EPYC processors and MI350 Series GPUs [13]. - The client and gaming segment saw a revenue increase of 73% year-over-year, with client revenue rising 46% to $2.8 billion and gaming revenue soaring 181% to $1.3 billion [14]. Future Outlook - Management anticipates Q4 revenue of approximately $9.6 billion, representing a 25% year-over-year increase [15]. - Analysts expect AMD's EPS to grow 20.22% year-over-year to $1.31 in Q4, with revenue projected to increase 25.78% year-over-year to $9.63 billion [16]. Analyst Sentiment - Most Wall Street analysts maintain a positive outlook on AMD, with a consensus "Moderate Buy" rating and an average price target of $291.29, indicating a potential upside of 33.9% from the current price [17]. - Some analysts argue that the AI race is ongoing and that AMD has a solid position to compete, especially with its recent agreements with OpenAI and others [18].