Key Points
-
AMD stock has declined in 2026, despite strong revenue growth and accelerating demand for its AI chips.
-
AI infrastructure deals with Meta and OpenAI have improved AMD’s long-term revenue visibility.
-
With a strong EPYC CPU franchise and an advancing AI chip roadmap, AMD appears well-positioned to benefit from the AI boom.
- 10 stocks we like better than Advanced Micro Devices ›
Shares of Advanced Micro Devices (NASDAQ: AMD) are still down by nearly 7.7% so far in 2026 (as of March 12, 2026), even after the company delivered a strong fourth-quarter 2025 performance. AMD reported revenue of $10.27 billion and adjusted earnings per share of $1.53 in the fourth quarter.
However, the stock has declined on lofty investor expectations, concerns about the company’s ability to compete with Nvidia in the artificial intelligence (AI) accelerator market, and uncertainty about the competitiveness of its next-generation GPUs.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The bullish thesis still looks intact
Despite these challenges, AMD’s growth story appears intact. In the fourth quarter, the company’s data center segment generated revenue of $5.4 billion, up 39% year over year. The growth was driven by strong adoption of EPYC server CPUs and accelerating deployments of Instinct AI accelerators across cloud providers and enterprises.
AMD’s long-term AI opportunity is also becoming evident through large hyperscaler partnerships. In February 2026, the company signed a multi-year agreement with Meta Platforms to deploy up to 6 gigawatts of Instinct GPUs. The first phase of the deployment, expected to begin in the second half of 2026, will use Helios systems powered by MI450-based GPUs and sixth-generation CPUs, and running AMD’s ROCm software platform. Previously, in October 2025, the company entered another 6-gigawatt deployment agreement with OpenAI. Such large deployments have created a multiyear revenue pipeline for AMD’s AI infrastructure products.
AMD’s product roadmap also appears impressive. Management claimed that MI450 and Helios systems remain on track for launch in the second half of 2026, while the company is also developing other next-generation products, such as MI400 and MI500 Instinct GPU series, designed to power future large-scale cloud, high-performance computing, and AI workloads.
Finally, AMD’s EPYC CPU franchise is also a crucial part of its AI infrastructure stack. Demand for EPYC processors is strong, since many agentic and emerging AI workloads require high-performance CPUs to work along with GPUs in data centers.
Hence, considering AMD’s accelerating data center business, expanding hyperscaler partnerships, and advancing AI roadmap, the bull case for AMD appears strong for 2026.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 16, 2026.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
