Advanced Micro Devices (AMD) saw its shares rise by 109% over the past 12 months, significantly outperforming the Zacks Computer and Technology sector, which gained 34.1%. This surge is primarily due to high demand for AMD’s EPYC processors and Instinct GPUs. Despite this growth, competition from NVIDIA, Broadcom, and Intel poses a challenge, with Intel’s shares spiking 130.2% in the same period.
For the first quarter of 2026, AMD projects revenues of $9.8 billion (±$300 million), marking a year-over-year growth of about 32% but a sequential decline of approximately 5%. The earnings consensus for the quarter is estimated at $1.27 per share, reflecting a 32.3% increase from the previous year. Future growth is expected in the Data Center and Gaming segments, although there are cautionary signals from slowing momentum and internal guidance.
AMD’s long-term outlook is bolstered by its expanding AI portfolio and upcoming MI450 series, set to leverage a 6-gigawatt agreement with Meta Platforms. The company expects its data center market potential to reach $1 trillion by 2030, with AI revenues anticipated to grow over 80% annually for the next 3 to 5 years.
