Advanced Micro Devices AMD outlined its “AI Everywhere, for Everyone” strategy at the CES 2026 with the introduction of Helios rack-scale platform, Instinct MI400 series lineup and Ryzen AI 400 and AI PRO 400 Series processors for AI PCs. These are noteworthy developments as AMD continues to boost its footprint across the AI-powered data-centers, high-performance computing and AI PCs amid stiff competition from the likes of NVIDIA NVDA, Broadcom AVGO and Intel INTC.
AMD shares have jumped 75.8% in the past year, outperforming the Zacks Computer and Technology sector’s 25.3% return. The stock has outperformed Broadcom and NVIDIA, shares of which returned 50.2% and 34%, respectively, over the same timeframe. However, Intel has outperformed AMD, with shares jumping 101.1%
NVIDIA is benefiting from the strong growth of its newer Hopper and Blackwell GPU platforms. Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. Intel is undertaking various strategic decisions to gain a firmer footing in the expansive AI sector. Capital infusion by Softbank, NVIDIA and direct funding from the U.S. Department of Commerce are likely to pave the way for innovation and growth.
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So, the question that arises among investors is, is AMD’s AI-first strategy potent enough to deliver long-term gains? Let’s find out.
In her CES 2026 keynote, CEO Lisa Su highlighted AMD’s expanding AI portfolio and rich partner base, which is translating AI innovation into real-world impact, from data centers to edge devices. Su emphasized the rapid shift toward “yotta-scale computing,” with global compute capacity projected to grow from about 100 zettaflops currently to more than 10 yottaflops (one yottaflop is equivalent to a computer performing one septillion calculations per second) within five years.
AMD’s Helios rack-scale platform is suitable for handling yotta-scale AI infrastructure. A single Helios rack can deliver up to 3 AI exaflops and is optimized for massive, energy-efficient training of trillion-parameter models. Helios comprises Instinct MI455X accelerators, EPYC “Venice” CPUs and Pensando “Vulcano” NICs for scale-out networking and the open AMD ROCm software ecosystem.
Meanwhile, AMD’s new MI440X (part of the MI400 series) accelerators target on-premises enterprise AI, while MI430X GPUs are well equipped to power major global supercomputers. The next-gen Instinct MI500 GPUs, planned to launch in 2027, deliver up to 1,000 times increase in AI performance compared with the Instinct MI300X GPUs introduced in 2023. MI500 is built on CDNA 6 architecture and 2nm process technology and comprises HBM4E memory.
As part of the “AI Everywhere, for Everyone” push, AMD expanded its AI PC portfolio with the unveiling of Ryzen AI 400 and AI PRO 400 Series processors. These offer 60 TOPS NPUs and full ROCm platform support for smooth cloud-to-client AI scaling. The company expanded its portfolio with Ryzen AI Max+ 392 and Ryzen AI Max+ 388, which support models of up to 128 billion parameters with 128GB unified memory. New embedded Ryzen AI processors extend AMD’s reach into automotive, healthcare and robotics.
AMD envisions the data center total addressable market to hit $1 trillion by 2030, suggesting a CAGR of more than 40% from roughly $200 billion estimated in 2025. AMD expects its data center AI revenues to see a CAGR of more than 80% over the next 3-5 years, driven by strong demand for instinct GPUs (MI450 Series and Helios rack-scale solutions) and expanding clientele that includes multiple hyperscalers, as well as sovereign opportunities. Overall data center business revenues and total revenues are expected to see a CAGR of more than 60% and greater than 35%, respectively, over the same time frame.
Oracle Cloud Infrastructure will launch the first publicly available AI supercluster using AMD’s Helios rack design. The MI350 series has gained traction among neocloud providers, including Crusoe, DigitalOcean, TensorWave and Vultr, among others. The MI300 series is gaining rapid adoption among developers. New partners like Character.AI and Luma AI are now running production workloads on the MI300 Series. OpenAI selected AMD as a preferred partner to build 6 gigawatts (GW) of next-generation AI computing capacity. The rollout will begin with 1 GW of AMD Instinct MI450 GPUs in the second half of 2026.
The Zacks Consensus Estimate for 2026 revenues is pegged at $43.05 billion, indicating 26.9% growth from the 2025 consensus estimate of $33.94 billion.
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
The consensus mark for 2026 earnings is pegged at $6.26 per share, unchanged over the past 30 days, suggesting 58% growth from 2025’s consensus estimate of $3.96 per share.
AMD stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this moment.
The stock is trading at a premium, with a forward 12-month price/sales of 8.05X compared with the sector’s 7.42X.
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AMD’s expanding portfolio and growing data center AI footprint are expected to improve its top-line growth. However, its near-term prospects are modest due to stiff competition from NVIDIA in the cloud data center and AI chip markets. Stretched valuation is a concern. These factors are expected to remain an overhang on the stock.
AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).