Profits surge for AMD by 45% within three days, suggesting continued growth opportunity
In the ever-evolving world of technology, AMD is making waves in the semiconductor sector, particularly in the AI era. The company's stock, currently trading around £171.70 as of August 2025, has shown strong momentum, driven by growth in AI, data centers, and high-performance computing (HPC) markets.
The latest earnings report for Q2 2025 revealed record revenue of £7.7 billion, up 32-36% year-over-year. Significant contributions came from data center revenue (around £3.2-£3.7 billion) and AI GPU sales, which grew by 40% despite some export restrictions.
AMD's competitive positioning is strong in AI and HPC due to its dual strategy in CPUs (notably EPYC server processors) and AI accelerators (MI300 series). Their MI300X and MI350 accelerators compete directly with Nvidia’s H100, with a roadmap promising a 10x generational performance uplift and 40% better token-per-dollar efficiency. However, export controls on certain GPUs have caused approximately £800 million in inventory charges for Q2, although analysts view this as a temporary setback.
Investor confidence remains high given AMD’s continued revenue growth, expanding market share, and strategic partnerships with major cloud providers like Microsoft. AMD’s forward P/E is around 22-40, reflecting both strong growth expectations and some market caution regarding valuation and execution risks, including supply chain concerns with TSMC and competitive challenges against Nvidia’s CUDA ecosystem.
The future outlook remains positive, with continued growth in AI infrastructure spending supporting demand for AMD’s high-performance AI chips. New accelerator launches are expected to further challenge Nvidia’s dominance. Expansion in data centers and HPC markets will reinforce AMD’s revenue base, while strategic partnerships and acquisitions bolster AMD’s ecosystem for AI and cloud computing.
Meanwhile, the new stock report "Next AI Wave" has highlighted three lesser-known stocks in the semiconductor sector. It's not clear whether Nvidia is one of these stocks or if the report provides any information about the potential price development of these lesser-known stocks. However, these stocks are currently under the radar of many investors, offering potential additional profit opportunities.
AMD's stock has been under the watchful eye of the TSI-USA Stock Service for some time, with the service recommending AMD shares along with a suitable option in issue 15/25 on 24 July 2025. The interim target was reached with a 45% gain in just three trading days. The bulls aim for the next target of £190 for AMD's stock.
In the broader context, this development raises new hopes for a thaw in the tense US-China trade relations, as the resumption of shipping certain semiconductors to China by chipmakers Nvidia and AMD has been approved by the US government under certain conditions.
With AMD's strong partnerships with companies like Microsoft, Meta, and others, the company continues to position itself as a genuine growth engine due to an aggressive innovation strategy. Over the past few years, AMD has transformed from an eternal runner-up to a serious challenger in the semiconductor arena.
[1] TechCrunch [2] Seeking Alpha [3] CNBC [4] The Verge [5] Bloomberg
- In the current financial landscape, investors are closely watching AMD's stock due to its impressive growth in AI, data centers, and high-performance computing markets, as reported by TechCrunch, CNBC, The Verge, Seeking Alpha, and Bloomberg.
- The innovation strategy of AMD, driven by its focus on AI and high-performance technology, has caught the attention of several key players in the tech world, such as Microsoft, Meta, and others, making investing in AMD a compelling proposition in the ever-evolving tech industry.
