Advanced Micro Devices, Inc. (AMD) has seen a remarkable stock surge of 107.1% over the past year, far exceeding NVIDIA Corporation (NVDA), which gained 63.8%. As AMD enters the artificial intelligence market more aggressively, investors are curious about its potential for continued growth.
AMD is attracting significant attention with its competitively priced chips, recently adopted by major companies like IBM and Oracle Corporation, the latter partnering with AMD to deploy a supercluster featuring 50,000 AMD graphics on Oracle Cloud Infrastructure. AMD forecasts fourth-quarter 2025 revenues to reach approximately $9.6 billion, indicating expected year-over-year growth of 25%. Financial analysts project a short-term price target for AMD stock at $286.49, suggesting a potential upside of over 13% from its closing price of $252.18.
Despite being smaller than NVIDIA, AMD’s diverse revenue streams, particularly from gaming, may buffer against market volatility. Its ROCm software’s recent downloads hint at growing acceptance, positioning AMD as a compelling investment in the rapidly expanding AI sector.
