Advanced Micro Devices (NASDAQ: AMD) is witnessing a rebound in share prices in 2025, attributed to a confirmed positive outlook centered on data centers and AI. The company aims to gain market share at NVIDIA’s expense, which currently holds around 90% of the AI market due to its GPU technology. Analysts predict AMD’s focus on memory capacity and efficiency will strengthen its position in the AI workloads sector, particularly with the anticipated launch of the MI400 series.
AMD recently acquired ZT Systems to develop AMD-based rack-scale solutions, enhancing its AI platform. Forecasts for 2026 indicate strong growth across all segments, with expectations of significant market share gains against NVIDIA. The company is trading at approximately 45 times this year’s earnings, with a potential doubling in value over the next decade, supported by a positive analyst sentiment rating of “Moderate Buy” and a price target suggesting a further 20% increase.
Additionally, AMD has reached an agreement with the White House to resume AI GPU sales to China, a development seen as a catalyst for higher share prices.
