Can Advanced Micro Devices (AMD) Gain Ground in the AI Chip Race?

Advanced Micro Devices Inc. (NASDAQ:AMD) is among the best instrumentality learning stocks to bargain according to analysts. Investors person been pitting AMD against NVIDIA for months and person expected the company’s information halfway spot concern to accelerate and marque immoderate dent successful NVIDIA’s marketplace share. However, AMD’s Q4 2025 results connected February 3 and the astir 17% diminution successful its stock terms the time aft bespeak that expectations person risen importantly recently.

For Q4, Advanced Micro Devices Inc.’s (NASDAQ:AMD) results and guidance exceeded thoroughfare expectations. Q4 income grew 34% to $10.3 billion, exceeding a Bloomberg mean statement estimation of $9.7 billion. Profitability was stronger arsenic well, with adjusted EPS of $1.53 coming successful 16% up of the statement of $1.32.

The results were arsenic beardown crossed segments. AMD’s information halfway concern income of $5.38 cardinal surged 39% twelvemonth implicit twelvemonth and came successful 8% up of expectations, driven by beardown request for the EPYC processors and the continued ramp of its Instinct GPU shipments. On the different hand, Personal Computer-related income of $3.1 cardinal (+34% YoY) besides exceeded estimates by 7%.

For Q1 2026, the institution guided gross to $9.5-$10.1 billion, with an mean of $9.8 billion, exceeding thoroughfare estimates of $9.39 billion. However, according to a Bloomberg report, immoderate analysts projected gross supra $10 cardinal and expected the institution to usher to higher maturation fixed its artificial quality spending, which helped explicate the disappointment with the guidance.

Now, the absorption is shifting to the 2nd fractional of the year, erstwhile Advanced Micro Devices Inc. (NASDAQ:AMD) is expecting to merchandise its almighty spot designs successful the 2nd half, including the AI accelerator MI450, which the institution CEO, Dr. Lisa Su, called “an inflection point” for the company. On the results call, she rebuffed concerns astir constituent shortage and said:

We spot the quality to proceed to turn passim the year. There’s nary question that request continues to beryllium strong. And so, we’re moving with our proviso concatenation partners to summation proviso arsenic well. But from what we spot today, I deliberation the wide server concern is strong.

Following the results, astir analysts connected the thoroughfare person maintained their recommendations, though immoderate person made marginal revisions to their terms targets. As of the clip of writing, implicit 80% of analysts are bullish connected AMD, with a statement 1-year median terms people of $300, implying astir 41% upside.

Advanced Micro Devices Inc. (NASDAQ:AMD) is simply a starring semiconductor institution specializing successful high-performance computing and graphics solutions. Its wide merchandise portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for information centers, gaming, and embedded systems.