What's Going On With AMD Stock Today?

Advanced Micro Devices (AMD) stock has been on the rise recently as the company strengthens its position in AI and data-center computing, according to experts. The stock surged more than 30% over the past five days, while NVIDIA Corp. (NASDAQ:NVDA) lost 11% amid uncertainty surrounding its leadership transition. Seaport Research analyst Jay Goldberg believes AMD now presents a more formidable competitor to NVIDIA, citing the company's advancing products and expanding share opportunities.

Prime Capital Financial CIO Will McGough adds that AMD and Broadcom Inc. (NASDAQ:AVGO) have already started gaining market share before NVIDIA's leadership turmoil and that the market is reassessing NVIDIA's competitive advantage as alternative suppliers improve. Counterpoint Research reported that AMD's third-quarter revenue grew 45% year over year to $13.4 billion, with data-center revenue up 97% to $8.5 billion, representing 64% of total revenue.

The firm expects data-center revenue to exceed 80% of AMD's total revenue by 2027, with AMD's fourth-quarter guidance of about $17 billion being roughly $800 million higher than consensus. AMD's data-center lead stems primarily from AI GPUs and racks, but the company anticipates substantial gains in x86 server share by 2027 due to its scaling shipments.

AMD's supply arrangement with Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is expected to support its projected growth, leaving execution and shipping as the key factors in 2027.