Advanced Micro Devices AMD is benefiting from the growing adoption of its EPYC processors by Alphabet GOOGL and Oracle ORCL. The fifth-generation EPYC processors are powering the new Google Cloud C4D and H4D virtual machines as well as Oracle Cloud Infrastructure Compute E6 Standard shapes.

Through its embedded EPYC portfolio, AMD supports high-performance compute, high-bandwidth network connectivity and security, and high-performance storage requirements for enterprise and cloud infrastructure. AMD recently expanded its x86 embedded processor portfolio with the launch of the fifth-generation EPYC family server of processors. The latest processors help networking, storage and industrial edge systems process more data faster and more efficiently.

Meanwhile, the company expanded its gaming offering with the AMD Radeon RX 9070 XT and RX 9070 graphics cards. AMD Radeon RX 9070 XT and RX 9070 graphics cards, part of the Radeon RX 9000 Series, are based on the much-anticipated AMD RDNA 4 graphics architecture.

Can AMD’s Expanding Portfolio Help Shares to Recover?

Will the latest additions and an expanding clientele help AMD stock recover in the near term? The company has been suffering from stiff competition from NVIDIA NVDA in the cloud data center and AI chip markets. Growing demand for custom AI chips offered by the likes of Broadcom is increasing concern over market share.

AMD Stock’s Performance

AMD shares have lost 19.9% year to date, underperforming the Zacks Computer and Technology sector’s decline of 12.6% and the Zacks Computer – Integrated Systems industry’s drop of 9%. 

AMD has been relying on its portfolio of fifth-gen EPYC Turin, fourth-gen and third-gen EPYC processors, as well as Instinct accelerators and ROCm software suite to fight off competition of NVIDIA, shares of which have dropped 10.9% year to date.

In 2024, AMD’s Data Center revenues accounted for roughly 50% of annual revenues and jumped 69% year over year to $3.9 billion. EPYC instances increased 27% in 2024 to more than 1000, with hyperscalers like Amazon Web Services, Alibaba, Google, Microsoft and Tencent launching more than 100 general-purpose AI instances in the fourth quarter of 2024 alone.

Rich Partner Base & Acquisitions to Boost AMD’s Prospects

A rich partner base that includes Cisco Systems, IBM, Oracle, Amazon, Alibaba, Alphabet, Microsoft, Meta Platforms, Dell Technologies and Tencent has been playing a key part in expanding AMD’s footprint. 

AMD has been on an acquisitive spree to strengthen its AI ecosystem and bridge the technological gap with NVIDIA in the race for AI dominance. The acquisition of Helsinki-based Silo AI-enhanced AMD’s AI development capabilities. The acquisition of ZT Systems, which provides AI infrastructure to large hyperscale computing companies, enables AMD to simultaneously design and validate its next-generation AI silicon and systems.

AMD’s 2025 Earnings Estimates Trend Upward

The Zacks Consensus Estimate for AMD’s 2025 earnings is currently pegged at $4.60 per share, up by a penny over the past 30 days, indicating year-over-year growth of 38.97%.
 

Advanced Micro Devices, Inc. Price and Consensus

Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote

The consensus mark for 2025 revenues is pegged at $31.72 billion, indicating year-over-year growth of 23.02%. 

AMD beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.32%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Zacks Rank

AMD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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