Advanced Micro Devices Stock Surged 100%, Here’s Why
Advanced Micro Devices (AMD)‘s stock skyrocketed over 100%, fueled by surging revenue and expanding profit margins, but it’s more than numbers—game-changing AI partnerships, data center expansion, and bullish analyst sentiment are rewiring its future. Let’s unpack what’s really behind this meteoric rise.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 1212025 | 1212026 | Change | |
|---|---|---|---|
| Stock Price ($) | 122.3 | 249.8 | 104.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 24,295.0 | 32,027.0 | 31.8% |
| Net Income Margin (%) | 7.5% | 10.3% | 37.3% |
| P/E Multiple | 108.5 | 122.9 | 13.3% |
| Shares Outstanding (Mil) | 1,620.0 | 1,626.0 | -0.4% |
| Cumulative Contribution | 104.3% |
So what is happening here? The stock soared 104%, driven by a 32% revenue boost, a 37% jump in net margin, and a 13% lift in P/E multiple. Let’s dive into the key moves behind these gains.
Here Is Why Advanced Micro Devices Stock Moved
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- What Could Set Advanced Micro Devices Stock on Fire
- Strong Earnings: Q3 2025 revenue hit $9.2B, up 36% YoY. Multiple quarters beat expectations, showing solid growth.
- AI Chip Leadership: MI350 series launched mid-2025; strong demand for MI300/MI350 GPUs fueled AI revenue projections.
- OpenAI Deal: Oct 2025: OpenAI partnered for 6 gigawatts of Instinct AI accelerators, boosting stock 41% in a week.
- Data Center Growth: EPYC and Turin CPUs drove server market share gains; Q3 2025 data center revenue grew 22%.
- Positive Analyst View: KeyBanc upgraded to “Overweight” Jan 2026, citing dominant data center position and high demand.
Our Current Assesment Of AMD Stock
Opinion: We currently find AMD stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell AMD Stock to see what drives our current opinion.
Risk: A good way to gauge AMD’s risk is to check how deep its drops have been in past market crises. The stock plunged over 83% in the Dot-Com Bubble and nearly 91% during the Global Financial Crisis. Even the inflation shock in 2022 dragged it down more than 65%. Smaller sell-offs like the 2018 correction and the Covid pandemic still hit AMD with declines around 49% and 34%, respectively. Strong fundamentals matter, but when markets turn sharply negative, AMD has shown it can still take serious hits.
AMD stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.