TLDR
- AMD stock has surged 43.9% over the past three months, outperforming the Technology Select Sector SPDR Fund’s 13.3% returns
- The company reported Q2 adjusted EPS of $0.48 beating estimates of $0.47, with revenue of $7.7 billion topping forecasts of $7.4 billion
- AMD faces a $1.5 billion revenue impact from China export restrictions on high-performance chips, affecting Q2 and Q3 2025
- Wall Street analysts maintain a “Moderate Buy” rating with a mean price target of $189.65, suggesting 16.6% upside potential
- The company launched new Instinct MI350 series GPUs to compete with NVIDIA in the AI accelerator market
Advanced Micro Devices delivered another solid quarter that sent shares climbing over 6% in the following trading session. The semiconductor giant reported adjusted earnings per share of $0.48, edging past Wall Street’s estimate of $0.47.
Revenue came in at $7.7 billion, beating forecasts of $7.4 billion. For the third quarter, AMD projects revenue between $8.4 billion and $9 billion, showing management’s confidence in continued growth momentum.
The stock has been on a tear lately, soaring 43.9% over the past three months. That performance easily outpaced the Technology Select Sector SPDR Fund’s 13.3% returns during the same period.
Over the past 52 weeks, AMD shares have climbed 34.6% while gaining 11.1% year-to-date in 2025. The stock has been trading above its 50-day moving average since early May and above its 200-day moving average since mid-June.
Despite this strength, AMD sits 12.9% below its recent 52-week high of $186.65, which it hit on August 13th.
AI Strategy Takes Center Stage
AMD continues pushing hard into artificial intelligence and data center markets. The company recently launched its Instinct MI350 series GPUs, designed to go head-to-head with NVIDIA’s offerings in the AI accelerator space.
Analysts expect AMD’s GPU sales to reach $1.3 billion in Q3 2025 and $2.2 billion in Q4 2025. That represents strong quarter-over-quarter growth as the company gains traction in the lucrative AI market.
The company is also working on its next-generation AI platform, codenamed “Helios,” set to launch in 2026. This platform will feature advanced components like the Zen 6 EPYC CPU and Instinct MI400 GPU.
AMD has secured partnerships with major tech companies including OpenAI, Microsoft, Meta, and Amazon Web Services.
China Export Restrictions Create Headwinds
AMD faces some near-term challenges from export restrictions on high-performance chips to China. The company announced a $1.5 billion impact from China-based MI308 revenues, primarily affecting the second and third quarters of 2025.
These restrictions highlight the geopolitical risks semiconductor companies face. Despite these headwinds, AMD maintains a positive outlook and expects strong double-digit growth in its Data Center Instinct segment.
AMD keeps chipping away at competitor market share across multiple segments. In desktop processors, the company’s desktop MPU share increased to 30.2% in recent quarters.
Wall Street analysts remain moderately bullish on AMD’s prospects. The stock carries a consensus “Moderate Buy” rating from 44 analysts covering it.
The mean price target of $189.65 suggests potential upside of 16.6% from current levels. Recent analyst upgrades from Truist Securities at $213 and Barclays at $200 show growing optimism about AMD’s AI and data center prospects.
