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Advanced Micro Devices (AMD) has entered a multi-year partnership with OpenAI to deploy 6 gigawatts of AMD Instinct GPUs for next-gen AI infrastructure, starting with a 1-gigawatt deployment of MI450 GPUs in the second half of 2026. AMD is leveraging collaborations with various partners, including Cohere, IBM, and Google, to expand its data center footprint.
AMD anticipates a double-digit growth in Data Center revenues both year-over-year and quarter-over-quarter for the third quarter of 2025, reaching an estimated $14.47 billion—a 15% increase from 2024. The upcoming MI400 series launch in 2026 is expected to bolster these revenues.
Despite a 79.1% increase in share price year-to-date, AMD faces tough competition from NVIDIA and Broadcom, both of which have strong market presence. AMD’s current valuation indicates it may be overvalued, carrying a forward price/sales ratio of 9.21 compared to the sector’s 6.73.
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