AMD and Apple's Growth Potential in AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy AMD?
Source: NASDAQ.COM
- AMD Revenue Growth: AMD's revenue reached $34.6 billion in 2025, marking a 34% increase driven by strong performance in data center, client, and gaming segments, with expectations of achieving at least $20 per share in earnings over the next three to five years, highlighting its growth potential in the AI chip market.
- Strong Data Center Business: AMD's data center segment generated $16.6 billion in revenue last year, a 32% increase, with 80% usage of its Instinct processors among the top ten AI companies, indicating the company's growing competitiveness in the hyperscale data center market.
- Apple's Market Leadership: Apple held a 24.2% market share in the smartphone sector in Q4 2025, shipping 81.3 million iPhones, with annual shipments totaling 247.8 million, a 6.3% increase, demonstrating its strong market position despite perceived lag in AI capabilities compared to rivals.
- AI Software Monetization Opportunities: With over 2.5 billion active devices, Apple management noted that enterprises are leveraging its AI-enabled devices for productivity improvements, suggesting potential monetization through paid subscriptions for advanced AI features, which could further drive company growth.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 221.530
Low
210.00
Averages
289.13
High
377.00
Current: 221.530
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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