AMD Gains Traction in AI Infrastructure Market: A Sign of More Upside?

Advanced Micro Devices AMD is benefiting from strong traction in the AI infrastructure market, driven by its advanced product portfolio and strategic investments in AI hardware and software. The company’s focus on high-performance computing solutions, particularly its EPYC processors and Instinct GPUs, has positioned it as a key player in the rapidly growing AI and data center markets. In the second quarter of 2025, AMD reported record revenues of $7.7 billion, a 32% year-over-year increase, driven by strong demand for its EPYC and Ryzen processors, as well as the ramp-up of its MI350 series GPUs.Expanding portfolio has been noteworthy. In June 2025, AMD unveiled its new Instinct MI350 Series GPUs and open rack-scale AI infrastructure, showcasing significant advancements in AI performance and energy efficiency alongside major industry partners.AMD’s partnerships with major players, such as Oracle, which is building a 27,000-node AI cluster powered by AMD’s CPUs, GPUs, and SmartNICs, further underscore its growing presence in the AI space.Further expanding its portfolio, AMD recently expanded its global partnership with Cohere. This collaboration brings AMD Instinct GPU-powered infrastructure to Cohere’s enterprise AI services, integrating Cohere’s North platform into its own AI workloads. The goal of this partnership is to provide secure, high-performance, and cost-effective AI solutions for businesses and sovereign AI projects around the world.AMD Suffers From Stiff CompetitionAdvanced Micro Devices suffers from stiff competition from the likes of NVIDIA NVDA and Intel Corporation INTC, which are also expanding their footprint in the AI Infrastructure space.NVIDIA is benefiting from the strong growth of artificial intelligence (AI) and high-performance accelerated computing. The increasing demand for generative AI and large language models that utilize graphics processing units (GPUs) from NVIDIA’s Hopper and Blackwell architectures is driving up data center revenues. In the second quarter of fiscal 2026, Data Center revenues jumped 56% year over year and 5% from the previous quarter to $41.1 billion. Intel is gaining solid market traction in the AI infrastructure market. Super Micro Computer, a global leader in high-performance, energy-efficient IT solutions, has opted to deploy Intel’s Xeon 6 Processors in its 4-socket servers for large-scale database and enterprise applications. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung, and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration.AMD’s Share Price Performance, Valuation, and EstimatesAdvanced Micro Devices shares have gained 33.1% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 21.7%. However, it has underperformed the Zacks Computer-Integrated Systems industry’s increase of 41.3%.AMD Stock's PerformanceImage Source: Zacks Investment ResearchAMD stock is trading at a premium, with a forward 12-month Price/Sales of 7.01X compared with the industry’s 3.92X. AMD has a Value Score of F.Price/Sales (F12M)Image Source: Zacks Investment ResearchThe consensus mark for 2025 earnings is pegged at $3.95 per share, which has increased by a penny over the past 30 days, suggesting 19.34% year-over-year growth.Advanced Micro Devices, Inc. Price and Consensus Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. QuoteAdvanced Micro Devices currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks