2026 will mark an ambitious and turbulent push into the AI business for Advanced Micro Devices (AMD).
• AMD plans to further expand its AI and data center presence in 2026
• Tech group aims for annual sales growth of over 35 percent
• Partnership with OpenAI drives growth
The market leader in AI chips, NVIDIA, is facing increasing competition: in 2025, Advanced Micro Devices (AMD) was able to position itself as an independent player in the AI business. Through several important AI contracts, AMD has established itself as strategically independent, even if NVIDIA continues to dominate the market. The stock could therefore experience a potentially turbulent phase in 2026, reports TheStreet.
Expansion in AI and high performance areas
At Financial Analyst Day on November 11, 2025, AMD presented its plans for long-term growth, with a focus on data center and AI expansion. The company relies on a broad portfolio of hardware, software and solutions to cover the entire range from computing power to AI infrastructure. The company is aiming for annual sales growth of over 35 percent and adjusted earnings per share of more than $20.
Strong momentum thanks to new partnership
2025 was a year of the first major AI successes for AMD. October was a turning point: the partnership with OpenAI in particular led to a share price increase of 58.3 percent in October 2025.
Sales and finances
AI products are likely to have accounted for 21 percent of total sales by 2025, and TheStreet estimates annual revenue at around $33 billion. In its financial results report for the third quarter of 2025, AMD itself forecast revenue of $9.6 billion and a non-GAAP gross margin of 54.5 percent for the fourth quarter of 2025.
According to AMD CEO Lisa Su, the market share in the AI segment is expected to increase by double digits, supported by the MI300 chips, reports TheStreet. AMD will publish the key figures for the past quarter and full year on February 3rd.
According to its own information, AMD is targeting strong growth for the next three to five years: In the data center sector, the company is planning annual sales growth of over 60 percent and more than 50 percent market share for server CPUs; in the AI segment, growth is even expected to be over 80 percent.
Bernstein analyst Stacy Rasgon called the goals ambitious because success depends on whether AMD can use the Helios Rack system to move from a niche to a leading AI provider, Reuters reports.
Analyst opinion and growth targets
According to data from TheStreet and TipRanks, Wall Street’s views on AMD shares vary significantly: Goldman Sachs expects $210, Bank of America $260, HSBC $310, Wells Fargo $345 and Melius Research $380. The consensus target is $285.79, which represents an upside potential of 27.82 percent from the last closing price of $223.59 (as of January 14, 2026)
Stock on the rise
AMD shares rose 92.58 percent in 2025. On the day it announced its data center revenue target of $100 billion to expand its position in the growing AI market, it climbed 7 percent, it said. Analysts see a solid foundation in the partnerships with OpenAI and Oracle as well as discussions with other hyperscalers, according to a report on Reuters.
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