Amd Stock To Remain Bullish

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Amd Stock To Remain Bullish

AMD Stock To Remain Bullish

AMD stock gained a lot of upside in 2025 and even outperformed Nvidia, which is quite a feat! This also shows that although AMD is nowhere near Nvidia for now, it is quietly catching up to the giant.

Despite all of this, analysts think there are several reasons that have held AMD back. For starters, Nvidia earngs 90% ofits revenue specifically from the data center sales. Meanwhile, the revenue of AMD is more spread out, with 52% coming from data centers and around 38% from gaming and the client division.

AMD Plans To Improve Data Center Revenue

The remaining 9% revenue comes from the embedded process division. Now, that's a good thing as AMD is not highly leveraged to the data center sales, but it also means AMD is missing out on a lot of revenue.

But now, AMD is ready to correct its mistake and is working to improve its data center revenue. That's why the Q4 2025 data showed a 39% y/y increase in revenue from the data centers.

But the valuation of AMD is a little high when compared with that of Nvidia. However, that could soon change once AMD starts to improve its revenue through data center sales.

For 2026, analysts think the revenue growth of AMD will be near 34%, and it will jump to 37% in 2027. This is mostly in line with the forecasts made by the management and tells us that AMD is on the right track.

Considering all of these things, it makes sense to be bullish on the AMD stock. For many, AMD stock can prove to be a great alternative in the AI space. Last but not least, those who think Nvidia stock is too expensive can also join the AI race by buying AMD stock.

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