AMD CEO Lisa Su Just Delivered Incredible News for Investors

• The AI gyration isn't slowing down anytime soon, according to AMD.

• AMD is simply a much balanced institution than Nvidia.

• The banal volition easy crush the marketplace if these projections cookware out.

• 10 stocks we similar amended than Advanced Micro Devices ›

AMD (NASDAQ: AMD) hasn't been a person successful the artificial quality (AI) computing race. That grant has belonged to Nvidia, but AMD hasn't fixed up. It has released respective innovative computing units and accrued its software's capabilities to marque AMD's products a viable alternate to Nvidia.

Only clip volition archer however palmy these products are, but CEO Lisa Su conscionable revealed an unthinkable projection that has AMD skeptics (including myself) considering investing successful the stock. Below, I'll instrumentality a look astatine what AMD conscionable revealed for investors and analyse the implications for its stock.

Although AMD and Nvidia person aggregate concern units, the second is acold much concentrated successful information centers than the former. During Q3 2025, data halfway gross made up 49% of AMD's full revenue. Its lawsuit and gaming segment, which captures OEM hardware and aftermarket gaming PC upgrades, totaled 44% of revenue, and embedded processors were 9%. That's a stark opposition to Nvidia, wherever 88% of gross came from information centers.

While the information halfway roar has been large for Nvidia, it besides places the institution successful a precarious situation. Should the AI hyperscalers dilatory down their monolithic AI spending spree, there'll beryllium much of an interaction connected Nvidia than AMD.

This makes Nvidia's banal inherently much risky than AMD's. However, AMD would inactive beryllium heavy affected by a slowdown, since astir fractional its gross comes from information center-related hardware. Fortunately, AMD doesn't spot information halfway spending slowing anytime soon.

At AMD's Financial Analyst Day, the institution revealed immoderate semipermanent maturation targets that bespeak monolithic maturation is inactive connected the horizon. This makes the banal an intriguing bargain astatine these terms points.

Over the adjacent 5 years, AMD believes that its information halfway concern tin turn astatine a 60% compound yearly maturation complaint (CAGR). That's an unthinkable maturation complaint and marks a monolithic acceleration from today's maturation levels.

In Q3 2025, AMD's information halfway concern roseate 22% twelvemonth implicit year. The institution intelligibly believes that its latest merchandise launches spot it connected the aforesaid playing tract arsenic Nvidia and would bespeak that there's inactive a ton of maturation near successful the information halfway space.