Key Points
Shares of Advanced Micro Devices (NASDAQ: AMD) have doubled over the past year, trading at a high price-to-earnings multiple, which may be justified by anticipated growth in infrastructure spending for artificial intelligence (AI). At CES 2026, AMD CEO Lisa Su announced that AI computing power has surged from 1 zettaflop in 2022 to over 100 zettaflops, with expectations of a further 100-fold increase in the next five years to support more advanced AI applications.
AMD’s upcoming Helios rack system will include 72 GPUs functioning as a single computing unit and aims to enhance operational efficiency for data centers. Analysts project AMD’s revenue will rise from $25 billion in 2024 to $62 billion by 2027, indicating substantial earnings growth and robust returns for investors. This growth will also be fueled by a shift towards integrated rack-scale systems, positioning AMD favorably against larger competitors in the evolving AI landscape.
