Advanced Micro Devices (AMD) is expected to enhance its 2026 prospects by expanding its enterprise collaborations, notably partnering with companies like Tata Consultancy Services, HPE, Oracle, Google, Microsoft, Alibaba, and IBM. This includes developing AI and Generative AI solutions, integrating Ryzen CPU-powered client solutions, and modernizing hybrid cloud and high-performance computing environments.
AMD’s Helios rack-scale platform can deliver up to 3 AI exaflops, targeting massive AI infrastructure and featuring components like the Instinct MI455X accelerators and EPYC “Venice” CPUs. Oracle Cloud Infrastructure will be the first to launch an AI supercluster using this design, while AMD has been chosen by OpenAI to build 6 gigawatts (GW) of AI computing capacity, starting with 1 GW of Instinct MI450 GPUs in late 2026. The data center total addressable market is projected to hit $1 trillion by 2030, with AMD anticipating a compound annual growth rate (CAGR) of over 80% in AI revenues over the next 3-5 years.
However, AMD faces tough competition from NVIDIA and Broadcom, which are rapidly expanding their respective AI product offerings. Despite a significant 103.1% increase in AMD’s share price over the past year, it remains overvalued with a forward price/sales ratio of 9.18 compared to the sector’s 7.18.
