AMD Stock Surges 75% Amid AI Growth
Advanced Micro Devices (NASDAQ: AMD) has seen its stock price rise approximately 75% over the past month, fueled by increasing artificial intelligence (AI) spending. Notably, Meta Platforms plans to utilize up to 6 gigawatts of AMD Instinct graphics processing units (GPUs) in the coming years, following a partnership with OpenAI announced in October. AMD anticipates revenue growth at an annualized rate of 35% and expects adjusted earnings per share to exceed $20 within the next three to five years.
In 2025, AMD’s revenue from data center products grew 34% year over year, reaching $34 billion, with expectations for AI revenue to reach “tens of billions” by 2027. AMD currently has a market cap of $552 billion, significantly lower than competitors like Nvidia, which approaches $5 trillion. The company’s upcoming product launches, including the Instinct MI450 GPU, are seen as pivotal for future growth.
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