Advanced Micro Devices (AMD) sees strong demand in data center AI business with Instinct MI350 and MI300 series GPUs. Oracle launches MI355X instances for real-time inference on OCI’s zettascale supercluster. AMD expects data center market to hit $1 trillion by 2030, with AI revenues seeing a CAGR of over 80% in the next 3-5 years.

Competition from NVIDIA and Broadcom poses challenges for AMD in the data center space. NVIDIA’s Hopper 200 and Blackwell GPUs gain traction, while Broadcom benefits from demand for networking products and custom AI accelerators. AMD’s stock performance is up 53.2% but is considered overvalued with a forward P/S ratio of 8.38X.

AMD expects double-digit growth in data center revenues in Q4 2025, driven by a strong portfolio. Despite tough competition, AMD anticipates strong growth with new AI computing capacity partnerships. The company’s valuation, with a Value Score of F, and estimates for Q4 2025 earnings suggest growth potential. AMD stock carries a Zacks Rank #3 (Hold).

Research Chief names AMD as a top stock pick for potential doubling. The company targets younger audiences, generating significant revenue. AMD’s stock performance is highlighted, with potential for explosive upside. Download Zacks Investment Research’s report for more insights on AMD and other top stock picks.

Read more at Nasdaq: Instinct GPUs Drive Data Center Growth: What’s Ahead for AMD Stock?