AMD to Launch Next-Gen Data Center Chips in 2026, Targeting $100 Billion Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- Data Center Expansion: AMD plans to launch the MI450 series data center GPUs in 2026, which are expected to deliver up to 36 times the performance, significantly enhancing its competitiveness in the data center market.
- Strong Financial Performance: As of September 27, 2025, AMD reported total revenues of $24.3 billion, with the data center segment contributing $11.2 billion, reflecting robust demand and market potential for AI GPUs.
- Strategic Partnership: AMD signed a deal with OpenAI to supply up to 6 gigawatts of GPU capacity by 2030, which is expected to drive long-term growth in its data center business and further solidify its market position.
- Stock Price Potential: Although AMD's current P/E ratio stands at 55.6, significantly higher than Nvidia's 45.6, projected earnings growth to $6.49 per share in 2026 suggests a potential 42% upside, making it an attractive opportunity for investors.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) 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, GPUs, 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+, and 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.
