AMD shares surged approximately 77% in 2025, significantly outpacing Nvidia’s 39% gain over the same period. This divergence accelerated in the second half of the year after AMD secured a multi-year deal to power OpenAI’s next-generation AI infrastructure, deploying 6 gigawatts of accelerator capacity. This performance highlights AMD’s evolution from a challenger to a credible threat in high-performance computing.

AMD’s data center business emerged as the core growth engine in 2025, delivering record revenue of $4.3 billion in the third quarter—a 22% year-over-year increase—powered by strong demand for 5th Gen EPYC processors and Instinct accelerators. Management projects data center revenue will grow at over a 60% compound annual rate over the next several years, reflecting confidence in both product performance and expanding ecosystem partnerships.

The MI300 series accelerators exceeded expectations in 2025, securing design wins with major hyperscalers and enterprises seeking alternatives amid competitor supply constraints and pricing pressures. The launch of the MI355X accelerator provided a cost-effective solution for AI inference workloads, helping AMD capture incremental market share. At CES 2026, AMD unveiled the MI400 series, including Helios racks for exascale computing, positioning the company to capitalize on broadening AI deployments beyond hyperscale data centers.

Analysts expect AMD to report fourth-quarter 2025 revenue of $9.65 billion, up 26% year-over-year, and earnings per share of $1.32, a 21.1% improvement versus the prior year. The Zacks Earnings ESP indicator shows a +2.01% surprise prediction, and the company holds a Zacks Rank #3 (Hold). Historical data indicates that a Zacks Rank of #3 or better combined with a positive Earnings ESP has led to positive earnings surprises 70% of the time, suggesting that AMD may again exceed expectations when it releases its Q4 results in early February.