"Revenue growth was just 5.6% annually in the past 3 years, but is expected to accelerate to over 34% annually in the coming years. EPS growth (minus non-recurring items) is expected to grow at a near-50% clip, too. A big mistake many investors made with AMD a year back is that they assumed the company had no prospects. After all, Nvidia controls 90-something percent of the AI GPU market."
"For AMD, the coming years are very opportune. Analysts expect last year's EPS growth to come in a hair above 20%, with 2026 growth over 3x higher at 65.5%. Some analysts believe it will be over 80% this year. Sales are expected to grow at around 32% annually this year. The AI GPU market is expanding rapidly enough to support strong growth for multiple players."
"It is already up over 120% in one year, and some estimates are now getting very ambitious. The market cap is at $414 billion. If the stock repeats its one-year performance again, one can be forgiven for eyeing a $1 trillion tag for AMD. AMD has been seen as largest competitor historically, up until very recently. NVDA stock has left AMD in the dust in the past few years and is now 11 times larger in size."
Advanced Micro Devices has surged over 120% in one year to a $414 billion market cap, prompting speculation about a $1 trillion valuation if growth continues. NVIDIA currently dominates the AI GPU market and is roughly 11 times larger, with earnings metrics favoring NVIDIA. AMD's recent trajectory shows accelerating revenue—from 5.6% annual growth over the past three years to analyst projections above 34% in coming years—and EPS growth forecasts approaching 50% or higher. Sales forecasts near 32% annually and analyst EPS expectations reach 65.5% in 2026. The expanding AI GPU market could support multiple vendors, and a roughly 10% market share would materially increase AMD's valuation prospects. Management targets double-digit AI share within 3–5 years.
Read at 24/7 Wall St.
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