AMD stock faces its next big test in 2026

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For the amended portion of the past decade, Advanced Micro Devices (AMD) lived successful Nvidia’s shadow. In 2025, that changed.

AMD banal took disconnected handsomely (up 78% year-to-date), arsenic Mr. Market stopped calling it “the alternative.”

The tech elephantine landed large AI deals successful proving its mettle arsenic much than conscionable a CPU turnaround story.

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Despite Nvidia’s dominance successful the AI spot space, the communicative has shifted to however overmuch marketplace stock AMD tin realistically capture.

That matters a large woody due to the fact that breakthrough years, specified arsenic 2025, rise expectations overmuch much rapidly than net tin support pace.

Nevertheless, AMD enters 2026 with coagulated momentum, existent semipermanent customers, and a fast-growing AI gross base, but besides with a banal terms that reflects plentifulness of that optimism.

Hence, 2026 mightiness not conscionable beryllium a triumph thigh but a proving ground.

<em>AMD enters 2026 with soaring AI ambitions arsenic investors ticker whether execution tin lucifer the hype</em>.Photo by David Becker connected Getty Images

2025 was intelligibly the twelvemonth erstwhile AMD began to onshore existent wins successful the AI space.

The turning constituent came successful October, erstwhile AMD announced marquee AI partnerships with the likes of OpenAI and Oracle, sending its banal up 34% successful a azygous day, according to Reuters.

Related: CoreWeave CEO delivers blunt 5-word instrumentality connected AI debate

OpenAI selected AMD arsenic its go-to GPU supplier, looking to deploy 6 gigawatts of AMD Instinct accelerators for its next-generation AI infrastructure plans.

Oracle followed suit by showing disconnected its archetypal nationalist AI supercluster built astir AMD’s caller Helios rack design, covering 50,000 MI450 GPUs slated for merchandise successful Q3 2026.

OpenAI: Multiyear woody to deploy 6 gigawatts of AMD Instinct GPUs; the archetypal 1 gigawatt of MI450 is expected for deployment successful the 2nd fractional of 2026.
Oracle: Expanded partnership; Oracle plans a publically disposable AI supercluster with 50,000 MI450 GPUs starting Q3 2026.
DOE/ORNL: $1 cardinal concern with ORNL, HPE, and Oracle Cloud to physique Lux and Discovery supercomputers.
Sanmina: Agreement up to $3 cardinal to bargain ZT Systems manufacturing.
Cisco + G42: UAE unafraid AI clump built and secured by Cisco for G42, featuring Instinct MI350X GPUs.

Moreover, CEO Lisa Su outlined a coagulated way to double-digit AI share, spearheaded by MI300 chips, which are forecasted to make over $2 cardinal successful income and representation advantages favoring ample AI models.

The bull lawsuit for AMD is present intelligibly showing up successful the numbers.

Earnings snapshot implicit the past 4 quarters:

FQ3 2025 (Sept. 2025): EPS 1.20, bushed by 0.03; gross 9.25 billion, up 35.59% twelvemonth implicit year, bushed by 487.48 million.
FQ2 2025 (June 2025): EPS 0.48, successful line; gross 7.69 billion, up 31.71% twelvemonth implicit year, bushed by 255.65 million.
FQ1 2025 (March 2025): EPS 0.96, bushed by 0.03; gross 7.44 billion, up 35.90% twelvemonth implicit year, bushed by 318.31 million.
FQ4 2024 (Dec. 2024): EPS 1.09, successful line; gross 7.66 billion, up 24.16% twelvemonth implicit year, bushed by 132.12 million.