"AMD Stock Surges 11% YTD: Hold or Exit Decision Time?"

Advanced Micro Devices (AMD) shares have surged 11.4% YTD, outperforming the Computer and Technology sector. Intel (INTC) shares have also increased, but AMD’s innovation gives it an edge. AMD’s expanding portfolio, acquisitions, and partner base drive growth, especially in Data Center and Client segments.

AMD’s Data Center revenues rose 57.2% YoY to $3.674 billion in Q1 2025, with Nokia adopting its EPYC processors for improved performance. The new MI350 GPUs enhance AI capabilities, with strategic partners like Meta Platforms recognizing AMD’s role in AI workloads.

However, AMD faces tough competition from NVIDIA in the data center market, with NVIDIA’s Data Center revenues jumping 73.3% YoY in Q1 2026. Export restrictions and NVIDIA’s growth pose challenges for AMD, reflected in the Q2 revenue guidance and declining earnings estimates.

Despite these challenges, AMD’s expanding portfolio, acquisitions, and partner base are expected to drive growth. However, macroeconomic uncertainties and competition from NVIDIA remain concerns. With a Zacks Rank #3, it may be wise for investors to wait for a better entry point. Hold AMD stock for now.

For investors seeking stock recommendations, Zacks Investment Research highlights a top pick with potential for significant growth. Director of Research Sheraz Mian believes this stock could outperform previous recommendations. Access the full report for more insights on promising investment opportunities.

Read more at Nasdaq: Advanced Micro Devices Stock Gains 11% YTD: Time to Hold or Exit?