AMD, a key player in the AI space, is making advancements to compete with Nvidia in the GPU business. Its AI accelerators could become viable alternatives, especially if Nvidia’s prices are too high. AMD’s Q4 results and 2026 outlook will provide clarity on its growth track, with potential for a stock surge.

AMD’s revenue is split between data center and non-data center segments, unlike Nvidia which heavily focuses on data centers. AMD projects a 60% growth rate for its data center division through 2030, but Q3 data center revenue growth was only 22%. The company has to meet high expectations in the coming years.

Investors should watch for strong guidance from AMD’s management on its 2026 outlook and data center division growth. The stock trades at a premium valuation compared to Nvidia, and AMD needs to justify this with solid growth and expanding margins. The upcoming report on Feb. 3 will be crucial for investor decisions.

Consider all factors before buying AMD stock, as it may not be included in the top 10 best stocks to buy now according to the Motley Fool Stock Advisor team. Past recommendations like Netflix and Nvidia have yielded significant returns, highlighting the potential for long-term growth. Stay informed and make well-informed investment decisions.

Read more at Nasdaq: Prediction: AMD Stock Will Soar on Feb. 3