Advanced Micro Devices (NASDAQ:AMD) stock surged by almost 50% between 7/17/2025 and 10/15/2025. The gains come on the back of improving earnings, a recovering CPU market and surging interest in GPUs for artificial intelligence applications. AMD also recently snagged a high profile deal with ChatGPT maker OpenAI, to supply tens of thousands of its GPU chips for 6 gigawatts of computing capacity over the next five years.
Lisa Su, chairwoman and CEO of Advanced Micro Devices (AMD), delivers the opening keynote speech at Computex 2024, Taiwan’s premier tech expo, in Taipei on June 3, 2024. (Photo by I-Hwa CHENG / AFP) (Photo by I-HWA CHENG/AFP via Getty Images)
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From a quantitative perspective, the gains were mainly influenced by a 19.3% shift in the company’s Net Income Margin (%). While there is more to this story than just figures, let’s first analyze the stock price movement by breaking it down into its contributing factors.
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Returning to the “change”: The shifts in fundamental factors such as valuation, revenue, and margins reveal a deeper narrative regarding the business and investor sentiment. Below, we highlight key developments that impacted the price movement of AMD stock. To provide context: AMD offers x86 microprocessors, accelerated processing units, chipsets, discrete and integrated GPUs, data center and professional GPUs, as well as development services across computing, graphics, enterprise, embedded, and semi-custom segments.
Here Is Why Advanced Micro Devices Stock Moved
- AMD reported record second-quarter 2025 revenue of $7.7 billion, marking a 32% year-over-year increase that surpassed expectations mainly due to robust sales of EPYC and Ryzen processors. However, the company fell short of EPS estimates, posting $0.48 against the expected $0.54, partly due to an $800 million charge relating to U.S. export controls on MI308 AI chips to China.
- The company provided an optimistic revenue forecast for Q3 2025 of approximately $8.7 billion, exceeding Wall Street predictions and indicating a healthy 28% year-over-year growth, propelled by strong demand in its Data Center segment and the launch of its Instinct MI350 series GPUs.
- Investor confidence was significantly heightened by important AI chip agreements, including a multi-year partnership with OpenAI to supply Instinct GPUs for its AI infrastructure, potentially generating tens of billions in revenue, and Oracle Cloud Infrastructure’s plan to roll out 50,000 AMD Instinct MI450 Series AI chips beginning Q3 2026. These announcements contributed to AMD’s stock jumping by 27% to 33% during pre-market trading alongside analyst upgrades.
- Multiple analysts increased price targets and held “Buy” or “Outperform” ratings for AMD, indicating a positive sentiment driven by the company’s competitive AI product portfolio, market share gains in server CPUs (achieving an all-time high of 39% in Q2 2025), and a solid product roadmap with the pending MI450 series.
- Despite the positive outlook, insider stock sales by senior executives, including CEO Lisa T. Su and SVP Ava Hahn in October 2025, indicated a reduction in their ownership, which may raise concerns among investors.
Our Current Assessment Of AMD Stock
Opinion: At the moment, we regard AMD stock as relatively pricey. Why is that? For an in-depth analysis, read Buy or Sell AMD Stock to understand the basis of our current view.
Risk: AMD is also vulnerable to significant downturns. It dropped about 83% during the Dot-Com crash and nearly 91% in the Global Financial Crisis. The corrections in 2018 and inflation shock caused losses of 49% and 65%, respectively. Even the Covid sell-off was harsh, erasing over 34%. While solid fundamentals are important, during market downturns, AMD has demonstrated its capacity to incur substantial losses.
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