In 2025, AMD delivered a 77% total return for shareholders, significantly outpacing its larger rival’s 39% gain. This divergence accelerated in the second half of the year after AMD secured a multi–year agreement to power OpenAI’s next-generation AI infrastructure. The company’s shares rallied as investors recognized its growing credibility in high-performance computing and data-center applications.

AMD’s data center business emerged as its core growth engine in 2025, posting record quarterly revenue of $4.3 billion in Q3, up 22% year-over-year. The MI300 series of accelerators exceeded internal targets, winning design slots with major cloud providers and enterprises seeking alternatives amid supply constraints from competitors. Management projects data center revenue will grow at a compound annual rate exceeding 60% over the next several years, reflecting strong customer adoption of both EPYC processors and Instinct GPUs.

Building on the success of MI300, AMD unveiled the MI400 series at CES 2026, featuring improved power efficiency and performance-per-dollar for AI inference workloads. Early demonstrations of the Helios rack system suggest it can scale to exascale computing environments. Alongside data center offerings, AMD’s Ryzen processors are benefitting from an uptick in AI-enabled PC refresh cycles, further diversifying revenue sources.

Analysts expect AMD to report Q4 2025 revenue of approximately $9.65 billion, a 26% year-over-year increase, and earnings per share near $1.32. With consensus forecasts pointing to mid-30% annual revenue growth overall and continued margin expansion, the stock trades at a forward multiple below that of many peers in the AI hardware space. This valuation discount, combined with robust end-market demand, underpins a constructive view on AMD shares for 2026.