What Is Happening With Advanced Micro Devices Stock?

-26.78%
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Market
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Trefis
AMD: Advanced Micro Devices logo
AMD
Advanced Micro Devices

Advanced Micro Devices (AMD) stock soared over 100%, sparked by a powerhouse earnings beat and soaring AI demand. With revenue climbing 32%, margins expanding, and a hot partnership with Meta, investors are betting big on its AI-driven future. Let’s dive into what’s really lighting up this rally.

Below is an analytical breakdown of stock movement into key contributing metrics.

1262025 1262026 Change
Stock Price ($) 122.8 251.3 104.6%
Change Contribution By:
Total Revenues ($ Mil) 24,295.0 32,027.0 31.8%
Net Income Margin (%) 7.5% 10.3% 37.3%
P/E Multiple 109.0 123.6 13.4%
Shares Outstanding (Mil) 1,620.0 1,626.0 -0.4%
Cumulative Contribution 104.6%

So what is happening here? The stock price surged 105%, driven by a 32% rise in revenue, a 37% boost in net margin, and a 13% jump in the P/E multiple. Let’s explore what fueled these gains next.

Here Is Why Advanced Micro Devices Stock Moved

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  • Q3 2025 Earnings Beat: Record $9.2B revenue and $1.20 EPS beat estimates; stock fell 3.67% after-hours.
  • AI Data Center Growth: Data center sales surged 57% in Q1 2025, driven by demand for MI300X/MI350 AI accelerators.
  • Meta Platforms Partnership: Meta became a top AI accelerator customer in 2025, purchasing MI455X AI boards for inference.
  • Raised AI Market Outlook: AMD increased its data center AI TAM forecast to over $1 trillion by 2030 at Analyst Day.
  • MI450 Series Anticipation: Anticipated launch of MI450 AI GPUs in H2 2025, including rack-scale solutions.

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.