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Advanced Micro Devices (AMD) Stock Predictions: What Investors Should Expect in 2026 and Beyond

By Matthew Frankel, CFP – Updated Jan 13, 2026 at 9:06 PM EST | Fact-checked by Frank Bass

Key Points

AMD's Q3 2025 revenue grew by 36% to $9.2 billion with significant gains in operating income and earnings.
Deals with OpenAI and Oracle for AMD GPUs in 2026 are expected to boost AMD's performance further.
Long term, AMD's data center revenue could drive stock growth, potentially reaching a $601 share price by 2030.

It's no secret that investment in artificial intelligence (AI) infrastructure continues to ramp up as we head into 2026, and one of the biggest winners has been the chipmakers. Of course, Nvidia (NVDA -0.99%) wins the "most likely to be in the headlines" prize, but Advanced Micro Devices (AMD -1.68%) is an extremely interesting and promising business all by itself.

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NASDAQ: AMD

Advanced Micro Devices

Today's Change

(-1.68%) $-8.44

Current Price

$495.45

Key Data Points

Market Cap

$822B

Day's Range

$486.67 - $510.43

52wk Range

$108.62 - $510.43

Volume

985.9K

Avg Vol

38.2M

Gross Margin

47.09%

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For example, AMD's deal to deploy 6 gigawatts of AMD graphics processing units (GPUs) for ChatGPT parent company OpenAI is expected to begin deployment in the second half of 2026. The same applies to the partnership between AMD and Oracle (NASDAQ:ORCL) for AMD's GPUs to power an AI "supercluster."

AMD 2030 forecast

Looking ahead to 2030, it's important to consider the long-term trends that impact AMD's business. Just to name a few:

The global data center GPU market is conservatively expected to roughly double by 2030, per a report by MarketsandMarkets. AMD's CEO Lisa Su is far more bullish, expecting it to reach $1 trillion in size by 2030, with AMD's annual data center revenue exceeding $100 billion at that point. For context, AMD's annualized data center revenue is about $17 billion today.
The global gaming chip market is expected to grow at a 16% annualized rate through at least 2030, and even the "mature" central processing unit (CPU) market is expected to grow at a double-digit rate.
The automotive chip market size is expected to grow at an 11% annual rate through 2030, according to Grand View Research. This is part of AMD's embedded chip business.

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AMD's data center chips have the No. 2 market share -- and it's a distant second place behind Nvidia -- but the momentum is heading in the right direction, and AMD has had some big customer wins recently, such as the OpenAI deal. Beyond data center chips, a few other factors could drive AMD's stock performance over the next few years:

PC and gaming chips: Unlike Nvidia, which derives the bulk of its revenue from data center chips, AMD's data center segment and its client and gaming segment generate roughly the same amount of revenue. If AMD's Ryzen processors and Radeon gaming chips continue to sell at record levels, it could certainly be a driver of the stock.
Embedded chips: AMD's embedded segment is its smallest, accounting for less than 10% of revenue; however, it presents a significant future opportunity. For example, AMD recently introduced its Ryzen AI Embedded Processor portfolio for applications such as automotive, healthcare, and others.
Valuation: AMD isn't exactly the most expensive chipmaker, but with a valuation of about 40 times forward earnings, it isn't a cheap one. This implies that there is significant future growth already priced into the stock, so an unexpected slowdown in growth could certainly hurt the performance.
Overall stock market/economic trends: It's worth mentioning that if the U.S. enters a recession, stock market correction, or bear market, it would likely be a key driving force behind AMD's stock price, regardless of how the business itself is performing.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

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@MattFrankelCFP

Matt Frankel, CFP has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.