Home News AMD Stock Price (NASDAQ:AMD): $154.82 Price, AI GPU Ramp, and IBM Quantum Catalyst

AMD Stock Price (NASDAQ:AMD): $154.82 Price, AI GPU Ramp, and IBM Quantum Catalyst

AMD battles Nvidia and Broadcom with MI350 accelerators, IBM quantum partnerships, and record EPYC CPU share as Wall Street eyes $221 upside | That's TradingNEWS

TradingNEWS Archive 9/8/2025 11:33:43 PM

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NASDAQ:AMD Stock Analysis – AI Growth, Data Center Momentum, and Valuation Pressure

Advanced Micro Devices (NASDAQ:AMD) closed at $154.82 after shedding more than 6% during Friday’s session, one of the steepest drops in the S&P 500. The decline came after Broadcom (NASDAQ:AVGO) revealed it had secured a fourth hyperscaler customer for custom AI chips, likely OpenAI, raising fears that demand from hyperscalers could shift away from AMD’s GPUs. Despite the selloff, AMD remains up 25% year-to-date, underlining both its volatility and its central role in the AI infrastructure race. You can track the live chart here: AMD Real-Time Chart.

Revenue Acceleration and Market Share Gains for NASDAQ:AMD

In Q2 2025, AMD reported revenue of $7.69 billion, up 31.6% year-over-year, marking its 33rd consecutive quarter of server CPU share gains. Data Center revenue reached $3.2 billion, a 14% increase, driven by EPYC server CPUs and Instinct GPUs. Client and Gaming revenue was even stronger at $3.6 billion, up 69%, boosted by record Ryzen sales and console demand. Semi-custom console chips alone contributed $1.1 billion. Net income under GAAP came in at $872 million, tripling from last year despite an $800 million write-down tied to MI308 GPUs restricted from export to China. Excluding that charge, AMD’s gross margin would have been 54%, compared to the reported 40%. The balance sheet shows $4.4 billion in cash against inventories of $6.7 billion, positioning the company for aggressive shipment ramps in the second half of the year.

AI Accelerator Strategy and Competition with Nvidia

AMD’s core bet remains its MI350 GPU family, built on a 4nm node with HBM3E memory. Production began ahead of schedule in June, with early adoption from customers like Oracle, which is deploying a 27,000-node cluster combining MI355X GPUs with EPYC Turin CPUs. AMD is also pushing its ROCm software ecosystem, with version 7 tripling performance compared to prior releases. Still, Nvidia dominates AI GPUs with a 92% market share, generating $41 billion in data center sales last quarter compared to AMD’s $3.2 billion. Intel is pushing Gaudi accelerators and Xeon CPUs, while Broadcom’s ASIC partnerships with hyperscalers introduce another competitive threat. The risk for AMD is that its GPU penetration, currently under 10% of AI compute, takes longer to scale, particularly as Microsoft, Google, and Amazon pursue internal chip strategies with Broadcom.

Quantum and Hyperscaler Partnerships Expanding AMD’s Reach

AMD’s partnership with IBM on hybrid quantum supercomputing represents a strategic leap beyond traditional CPU and GPU markets. By integrating EPYC CPUs, Instinct GPUs, and Xilinx FPGAs with IBM’s qubit architectures, AMD positions itself as a long-term player in high-performance computing. This complements its growing role with hyperscalers, where fears of Nvidia monopoly pricing are pushing firms like Microsoft, Meta, and Google to diversify orders toward AMD. Such dynamics could allow AMD to win larger contracts even if Broadcom captures custom chip opportunities.

Valuation of NASDAQ:AMD Stock and Street Projections

AMD trades at a forward P/E of about 41x and forward P/S near 8x, well above industry norms but lower than Nvidia’s multiples. Analysts expect FY2025 revenue of $33 billion, rising more than 20% to nearly $40 billion in FY2026. EPS is projected to grow from $3.90 TTM to $6.01 in FY2026, a 54% surge. Adjusting for growth, the PEG ratio falls to 0.46x by 2026, suggesting the valuation is steep but defensible if AMD sustains 20–30% annual earnings growth. Using a 35x earnings multiple on a conservative FY2026 EPS of $6.31 implies a share price near $221, about 46% upside from current levels. Citi recently reiterated a Hold rating with a $180 target, while other analysts maintain Buy ratings on expectations of strong AI-driven growth.

Risks Facing NASDAQ:AMD in AI and Global Markets

Export restrictions remain a major headwind. The MI308 write-down already cost AMD $800 million, and the firm has warned that restrictions could trim $1.5 billion from 2025 revenue. Competition is intensifying on multiple fronts: Nvidia continues to launch new Blackwell GPUs, Broadcom has secured OpenAI’s business for custom silicon, and Intel remains aggressive in CPUs and lower-cost AI accelerators. Hyperscalers’ in-house chip programs may reduce AMD’s potential TAM in the near term, though execution risks in those internal projects could create openings by 2026–2027.

Final Assessment on NASDAQ:AMD Stock

Advanced Micro Devices has transformed into a diversified compute leader spanning CPUs, GPUs, consoles, and emerging quantum-classical systems. Its $154.82 share price reflects high expectations, with valuation stretched but still justified by projected revenue growth of 28% in FY2025 and 21% in FY2026. Risks are significant, but so is the upside. With MI350 adoption accelerating, hyperscalers seeking Nvidia alternatives, and IBM collaboration extending its technological moat, NASDAQ:AMD remains a Buy for investors willing to accept volatility in exchange for high-growth exposure to AI and advanced computing.