In 2025, AMD surged ahead of Nvidia with a 77% stock increase compared to Nvidia’s 39%. This was fueled by a multi-year deal with OpenAI and strong data center performance. AMD’s MI300 series and MI355X accelerator gained traction, outperforming Nvidia in efficiency and cost-effectiveness in the AI market.

AMD’s growth in 2025 was driven by record data center revenue, reaching $4.3 billion in Q3. The MI355X accelerator proved to be a cost-effective competitor to Nvidia’s offerings, attracting customers with its performance-per-dollar advantages. Overall, AMD’s revenue growth accelerated to the mid-30% range, exceeding expectations and outperforming Nvidia.

Analysts anticipate AMD’s Q4 2025 earnings to jump 26% to $9.65 billion, with an EPS estimate of $1.32 per share. The Zacks Earnings ESP indicator suggests a positive surprise, with AMD currently ranked as a Zacks Rank #3 (Hold) stock. This, combined with strong performance in 2025, positions AMD for continued success in 2026.

Zacks Investment Ideas feature highlights Advanced Micro Devices (AMD) and Nvidia (NVDA) as key players in the semiconductor market. AMD’s recent outperformance and strategic partnerships in the AI sector position the company for continued growth. With a focus on innovation and efficiency, AMD offers investors a compelling opportunity in the evolving data center landscape.

Read more at Nasdaq: Zacks Investment Ideas feature highlights Advanced Micro Devices and Nvidia