Advanced Micro Devices shares surged 77% in 2025, nearly doubling the 39% gain of its largest rival, driven by a multi-year agreement to power OpenAI’s next-generation AI infrastructure. Under the terms of the deal, AMD will deploy 6 gigawatts of its MI300 series accelerators, cementing its position as a key supplier to one of the world’s most ambitious AI build-outs. This landmark contract underscores AMD’s credibility in high-performance computing and highlights growing hyperscaler diversification away from legacy providers.

AMD’s Data Center division generated record revenue throughout 2025, including $4.3 billion in Q3—a 22% year-over-year increase—driven by strong demand for 5th Gen EPYC CPUs and Instinct accelerators. Management projects a greater than 60% compound annual growth rate for data center revenue through 2028, fueled by customer wins amid competitor supply constraints and pricing pressures. The MI355X accelerator has emerged as a standout for inference workloads, offering superior performance-per-dollar and enabling AMD to capture incremental share in a market where efficiency and cost control are increasingly critical.

Looking ahead to early February’s Q4 earnings release, analysts have revised EPS estimates upward by 0.76% over the past 60 days, setting consensus at $1.32 per share—a 21.1% increase year-over-year—on revenue estimated at $9.65 billion. AMD currently holds a Zacks Rank #3 (Hold) with a +2.01% Earnings ESP, a combination that has historically led to positive earnings surprises 70% of the time. With the AI inference market projected to outpace training growth and the MI400 series accelerators unveiled at CES 2026 promising gains in efficiency and scale, AMD is positioned to sustain momentum and deliver continued upside for investors.