AMD is seeing strong demand for GPUs in data centers driven by AI and machine learning

From Nasdaq: 2025-06-27 11:52:00

Advanced Micro Devices (AMD) is experiencing strong demand for its GPUs due to the rise in AI and machine learning. Data Center revenues surged 57.2% in Q1 2025 to $3.674 billion, driven by EPYC CPU and Instinct GPU sales. AMD is expanding its AI portfolio with new Instinct MI350 GPUs and open rack-scale AI infrastructure.

AMD faces tough competition from NVIDIA and Intel in the GPU market. NVIDIA’s Data Center revenues grew 73.3% in Q1 2026, driven by AI and accelerated computing. Intel introduced new Arc Pro B-series GPUs for AI inference and demanding workloads, aiming to support creators and AI developers with powerful solutions.

AMD’s stock has gained 18.9% YTD but lags behind the industry. With a forward Price/Sales of 6.78X, AMD has a Value Score of F. The consensus estimate for Q2 2025 earnings is 54 cents per share, down 8.4% over the past 30 days and 21.74% year over year. Analysts predict an increase in 2025 earnings to $3.92 per share.

Zacks ranks AMD as a Hold with a projected 2025 earnings growth of 18.43% year over year. Explore Zacks’ top stock picks with potential for significant returns, including one that could double in value. For more investment recommendations and free reports, visit Zacks Investment Research.



Read more at Nasdaq: Can Advanced Micro Devices Aid Its Data Center Revenues With GPUs?