Shares of Advanced Micro Devices (NASDAQ: AMD) sank on Wednesday after the semiconductor designer's growth forecast didn't measure up to investors' sky-high expectations. By the close of trading, AMD's stock price was down more than 17%. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Getty Images. AMD's chips are selling well AMD's fourth-quarter revenue climbed 34% y ...

The chip maker data center segment sales jumped 39%, driven by strong demand for its EPYC processors and the ramp-up of its Instinct GPU shipments. ...

Key Takeaways AMD expects strong Q4 Data Center growth from EPYC processors and Instinct accelerators. Cloud hyperscalers tripled EPYC usage, now totaling over 1,350 public instances globally. Oracle and partners deploy AMD-powered AI superclusters and private cloud platforms. Advanced Micro Devices (AMD) is expected to have benefited from strong Data Center revenues in the fourth quarter of 2025. The company is set to release results on Feb. 3, 2026. The company continues to strengthen its footprint in the ...

Core Insights - Intel is struggling to regain its position in the chipmaking industry, while AMD is emerging as a stronger competitor, particularly in the AI market [1][2] Intel Overview - Intel's stock performance showed an 84% increase in 2025, but shares dropped over 20% recently [4] - The company reported a 4% year-over-year decline in revenue for Q4 2025 and anticipates further revenue erosion in Q1 2026 [6] - Intel's market share in the server CPU market has decreased from 85%-95% to around 55% [6][7] - The new CEO, Lip-Bu Tan, aims for a significant turnaround, but current results do not support this vision [7] AMD Overview - AMD is gaining market share in both the server and desktop CPU markets at Intel's expense [7] - The company is expected to lead the server CPU market with its EPYC processors, particularly the next-generation EPYC Venice CPUs [8] - AMD is also a major competitor to Nvidia in the GPU market, with its Instinct MI350 Series being the fastest ramping product in its history [9] - AMD targets a revenue compound annual growth rate (CAGR) of over 80% in the next 3-5 years and an overall revenue CAGR of more than 35% [10] Market Dynamics - The contrast between Intel and AMD highlights a shift in the chip industry, with Intel's revenue declining while AMD's is increasing [13] - Agility in responding to market demands, particularly in AI, is crucial for success in the current landscape [14] - Both companies may achieve market-beating gains, but AMD is viewed as having a greater likelihood of success [14]

Company Overview - Advanced Micro Devices, Inc. (AMD) is valued at $422.8 billion and is a leading global semiconductor company based in California, specializing in high-performance computing and graphics chips [1] - AMD's product lines include Ryzen CPUs for consumer PCs, EPYC processors for servers, Radeon GPUs for graphics and gaming, and Instinct accelerators for AI and high-performance computing [1] Stock Performance - AMD shares have significantly outperformed the broader market, gaining 104.6% over the past year compared to the S&P 500 Index's 13.9% increase [2] - Over the past six months, AMD's stock rose by 51%, while the S&P 500 Index increased by 8.8% [2] - AMD has also outperformed the SPDR S&P Semiconductor ETF (XSD), which gained about 32.5% over the past year and 31.6% over the past six months [3] Competitive Landscape - On January 26, AMD shares fell by 3.3% after Microsoft announced its new Maia 200 AI chip, which aims to reduce reliance on external chipmakers, raising concerns about demand for third-party suppliers and competitive pressure in the semiconductor market [4] Earnings Expectations - For FY2025, analysts expect AMD's EPS to grow by 19.5% to $3.13 on a diluted basis [5] - AMD's earnings surprise history is mixed, with the company beating or matching consensus estimates in three of the last four quarters [5] Analyst Ratings - Among 45 analysts covering AMD stock, the consensus rating is a "Strong Buy," consisting of 30 "Strong Buy" ratings, three "Moderate Buys," and 12 "Holds" [5] - On January 27, UBS analyst Timothy Arcuri reaffirmed a "Buy" rating and raised the price target from $300 to $330, indicating strong confidence in AMD's market position and future growth prospects [6]

Core Insights - Qualcomm Technologies Inc. and Advanced Micro Devices, Inc. are leading firms in the semiconductor industry, focusing on mobile, PC, and data center markets, with an emphasis on AI and advanced chip technologies [2][4] - Qualcomm is transitioning from a wireless communications firm to a connected processor company, leveraging its extensive intellectual property portfolio [5][6] - AMD has evolved from a consumer-PC chip provider to an enterprise-focused company, bolstered by its acquisition of Xilinx and the introduction of new products [3][10] Qualcomm's Position - Qualcomm is well-positioned for long-term revenue growth, driven by strong 5G traction and a diversified revenue stream [5] - The company is expanding its Snapdragon chipsets for AI PCs and gaming, aiming to reduce reliance on the slowing smartphone market [6][9] - Despite its advancements, Qualcomm faces stiff competition from Intel in the AI PC market and from Samsung and MediaTek in the smartphone sector [7] AMD's Position - AMD is benefiting from rising demand for its EPYC processors and strong enterprise adoption, particularly in cloud deployments and AI applications [11] - The company is expanding its AI market presence with new products like the MI350 series and is seeing strong demand across various sectors [10][11] - AMD faces competition from Intel in traditional computing and from NVIDIA in the GPU market, but has had success in the mobile segment [12] Financial Performance - Qualcomm's fiscal 2026 sales and EPS estimates suggest modest growth of 2.7% and 1%, respectively, with positive trends in EPS revisions [13] - In contrast, AMD's 2025 sales estimates indicate a significant growth of 31.6%, with EPS expected to rise by 19.6%, although EPS estimates have been trending downward [14] - Over the past year, Qualcomm's stock has gained only 0.6%, while AMD has surged by 84.2%, indicating a stronger market performance for AMD [16] Valuation Metrics - Qualcomm appears more attractive from a valuation perspective, with a price/earnings ratio of 13.46 compared to AMD's 34.67 [17] - Both companies are rated with a Zacks Rank of 3 (Hold), but Qualcomm's lower valuation may provide a slight edge as a better investment option [18][19]

Key Points Nvidia has been the leading AI chip designer since the start of the AI boom, but AMD has been gaining ground. Both companies design the chips powering crucial AI tasks. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has been the "go-to" source for artificial intelligence (AI) chips since the start of the AI boom, and this is thanks to two things: the company's first-to-market advantage and the strong performance of its chips. All of this has generated enormous earnings growt ...

Core Insights - Advanced Micro Devices (AMD) shares have increased by 70.3% over the past year, significantly outperforming the Zacks Computer and Technology sector's 24.7% return and the Zacks Computer – Integrated Systems industry's 68.8% appreciation [1] - The growth is driven by strong demand for EPYC processors and Instinct MI350 and MI300 series GPUs, with expectations for double-digit growth in Data Center revenues in Q4 2025 [1][9] Data Center Market Potential - AMD anticipates the data center total addressable market to reach $1 trillion by 2030, indicating a compound annual growth rate (CAGR) of over 40% from an estimated $200 billion in 2025 [2] - Data center AI revenues are projected to grow at a CAGR of over 80% in the next 3-5 years, supported by demand for Instinct GPUs and a growing customer base [2] Product Adoption and Partnerships - The adoption of fifth-generation EPYC processors is strong, with hyperscalers launching over 160 EPYC-powered instances in Q3 2025, marking a 50% year-over-year increase in public EPYC cloud instances [4] - New partnerships and product launches, such as Oracle's MI355X instances and the adoption of MI300 series by companies like IBM and OpenAI, are expected to drive further growth [5][6] Financial Performance and Guidance - AMD expects Q4 2025 revenues to be around $9.6 billion, reflecting approximately 25% year-over-year growth and 4% sequential growth [7] - The Zacks Consensus Estimate for Q4 2025 revenues is $9.64 billion, indicating a 25.9% increase from the previous year [8] Competitive Landscape - AMD faces significant competition from NVIDIA, Broadcom, and Intel, with NVIDIA's AI and high-performance computing growth posing a particular challenge [10][11] - Over the past year, AMD shares have underperformed compared to Broadcom and Intel, which returned 121.7% and 101.3%, respectively, while AMD outperformed NVIDIA's 32.5% return [12] Valuation Concerns - AMD's stock is currently considered overvalued, with a forward 12-month price/sales ratio of 8.49X compared to the sector's 6.79X, indicating a stretched valuation [16] - The company's near-term prospects are viewed as dull due to competitive pressures and valuation concerns [19]

Core Insights - Advanced Micro Devices (AMD) anticipates the data center total addressable market (TAM) to reach $1 trillion by 2030, indicating a compound annual growth rate (CAGR) of over 40% from approximately $200 billion estimated in 2025 [1] - AMD expects its data center AI revenues to grow at a CAGR of more than 80% over the next 3-5 years, driven by strong demand for Instinct GPUs and an expanding clientele [1] - Overall data center business revenues are projected to see a CAGR of more than 60%, while total revenues are expected to grow at greater than 35% during the same period [1] Stock Performance - AMD shares surged 18.7% in the past month, outperforming the Zacks Computer and Technology sector and competitors like NVIDIA, Broadcom, and Intel [3] - Over the trailing 12-month period, Broadcom shares returned 108.5%, while AMD appreciated 86.4% [3] Demand Drivers - Strong demand for EPYC processors is fueling AMD's growth, particularly in cloud and enterprise workloads [4] - The rapid adoption of AI technologies is generating increased demand for general-purpose compute infrastructure, benefiting EPYC sales [4] - In Q3 2025, hyperscalers launched over 160 EPYC-powered instances, with more than 1,350 public EPYC cloud instances available globally, marking a 50% year-over-year increase [10] Product Portfolio and Partnerships - AMD's strong product portfolio includes fifth-generation EPYC processors and Instinct MI350 series GPUs, which are driving top-line growth [10] - The company has introduced its Helios design and ROCm 7 software, enhancing AI training and inference performance [11] - An expanding partner base, including major companies like OpenAI, HPE, and Amazon Web Services, is contributing to AMD's growth prospects [12] Financial Guidance - AMD expects Q4 2025 revenues of $9.6 billion (+/-$300 million), representing approximately 25% year-over-year growth [13] - The Zacks Consensus Estimate for Q4 2025 revenues is pegged at $9.65 billion, indicating a 25.97% increase from the previous year [14] Valuation Concerns - AMD's stock is currently considered overvalued, with a forward 12-month price/sales ratio of 10.22X compared to the sector's 6.88X [15] - The company's stretched valuation is a concern for investors [18]

Core Insights - Advanced Micro Devices (AMD) shares have surged 111% year-to-date, driven by increased market share in the data center sector, rapid hardware adoption, and strategic partnerships [1][4] - Management's strong growth projections for the next three to five years were outlined at the recent Financial Analyst Day, boosting investor confidence and stock performance [2][5] Financial Projections - AMD's management projects total revenue growth at a compound annual growth rate (CAGR) exceeding 35% over the next three to five years, with adjusted operating margins expected to surpass 35% and earnings per share (EPS) anticipated to exceed $20 [5] - A Wall Street analyst forecasts AMD shares could reach $350 within the next 12 months, indicating a potential upside of over 35% from current levels [3] Data Center and AI Growth - The data center business is expected to deliver annual revenue growth exceeding 60%, driven by increased market share in server CPUs and rapid adoption of AI accelerators [6] - AMD anticipates revenue growth of more than 80% in the AI segment, reflecting strong demand for its next-generation Instinct processors [6] - Strategic partnerships with major industry players like OpenAI and Oracle have bolstered AMD's position in the data center and AI markets [4]