Shares of Advanced Micro Devices ( NASDAQ:AMD ) lost 4.27% over the past month after soaring 46.01% the month prior.
The most closely watched earnings report of the quarter is tomorrow. That's when AI chipmaking giant Nvidia will announce its third-quarter results.
In the third quarter of 2025, US semiconductor CPU trends showed continued market share gains for Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) and Arm Holdings PLC (NASDAQ:ARM), while Intel Corp (NASDAQ:INTC, XETRA:INL) benefited from higher average selling prices (ASPs) amid ongoing supply constraints, according to Bank of America analysts. Based on Mercury Research data, AMD and ARM both outperformed Intel in unit growth across desktop, notebook, and server segments, the analysts wrote in a note to clients.
The explosion of interest in artificial intelligence (AI) has caused the valuations of many tech stocks to skyrocket.
Advanced Micro Devices (NASDAQ:AMD) top boss Lisa Su is worth investing in, especially for the AI bulls out there who want to bet on the future of a fast-moving AI chip giant that has what it takes to keep up with the likes of the great Nvidia (NASDAQ:NVDA).
AMD (AMD) is a strong buy, with a clear path to double-digit data center AI market share and tens of billions in revenue by 2027. Key drivers include the MI450 on TSMC 2nm, open-source ROCm software improvements, and major partnerships with OpenAI, Oracle, and Meta. AMD forecasts 80%+ AI revenue CAGR for 3-5 years, targeting $20 EPS and a $500 fair value, supported by accelerating datacenter and CPU demand.
Advanced Micro Devices, Inc. stock looks expensive in the moment, but if you zoom out it's remarkably well-positioned for five to 10 years of elite returns. We are not facing an energy bottleneck as the core issue, we are facing policy isolationism that we have been pressured into by China. If business leaders and policy makers unite, cyclical AI dynamics will not occur heavily, and I am bullish on long-term AMD growth even with present constraints.
TD Cowen analyst Joshua Buchalter has reaffirmed his bullish stance on Advanced Micro Devices (NASDAQ: AMD), reiterating a ‘Buy' rating and maintaining a $290 price target.
Advanced Micro Devices, Inc. is rated Strong Buy, driven by robust Q3 2025 earnings and accelerating AI-related growth catalysts. AMD's OpenAI partnership could generate tens of billions in revenue, validating its GPUs as a credible alternative to Nvidia in data centers. Despite a premium valuation near 98x forward earnings, AMD's aggressive growth targets and next-gen MI450 chips support long-term upside.
AMD held an investor-day conference this week, and it helped the stock rise despite bearish valuation pressures in the AI category. Investors are betting AMD can win share from Nvidia in GPUs and keep winning share from Intel in CPUs.
In the high tech universe, there is only a single common road that Nvidia ( NASDAQ: NVDA ) , Advanced Micro Devices ( NASDAQ: AMD ) , Apple ( NASDAQ: AAPL ) , Qualcomm ( NASDAQ: QCOM ) , Broadcom ( NASDAQ: AVGO ) and many others must go to get their chips made, no matter where they hail from.
Artificial intelligence has been the most consequential catalyst for the stock market that may surpass the dotcom boom when it's all said and done.