AMD made some big moves in 2025.
In 2025, shares of AMD rose over 70%, outpacing the S&P 500 and even beating Nvidia's recent performance.
Why? AMD has been quietly building infrastructure for the AI boom - and it may be paying off.
But the question is - can this growth continue for AMD?
Let’s break down what’s driving growth for the chip giant, what Wall Street thinks, and what risks investors may face investing in the stock.
FYI - this article only scratches the surface of the research and analysis our analysts did on AMD.
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What's Driving AMD's Growth?
AMD isn't just riding the AI wave. They're building the actual hardware that makes it possible.
Here's what's happening:
Revenue is exploding. AMD's revenue jumped from $9.76 billion in 2020 to $25.79 billion in 2024. That's a 2.65x increase in just four years.
They're filling Nvidia's gaps. With Nvidia unable to keep up with demand, AMD has swooped in with competitive chips and open platforms that play nice with other systems.
Quantum computing is coming. AMD announced a major partnership with IBM in August 2025, successfully running quantum error-correction algorithms on AMD field-programmable gate arrays (FPGAs).
That last one deserves some attention.
AMD's Quantum Play: The Underrated Opportunity
Most people think of Nvidia when they hear "AI chips." But AMD is making a different bet.
They're focusing on error correction - one of the most important (and overlooked) areas in quantum computing.
Think of it like this: Most computer chips are like a toy car. They're built to do the same thing forever until they break.
AMD's FPGAs? They can be reprogrammed. And that makes them incredibly useful for AI, robotics, EVs, and now quantum computing.
In 2025, AMD declared that quantum and hybrid computing would be a strategic focus going forward.
Translation: They're positioning themselves for the next wave of tech innovation.
How AMD Stacks Up Against Nvidia
As of early 2026, investors are paying more for Nvidia’s growth than AMD’s growth.
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AMD has also been beating earnings expectations consistently throughout 2024 and 2025.
Their latest partnerships show they're moving from concept to commercialization.
There's room for more than one player in this space. And AMD is moving aggressively to claim its share.
What Wall Street Thinks Of AMD
AMD's stock has outpaced the S&P 500 and Nvidia over the past year. And it’s because of its potential:
- The company's revenue is growing.
- It’s partnering with big names like IBM on next-gen tech.
- And their products are being integrated into a lot of the tech we use everyday, from Microsoft Azure to Amazon AWS.
AMD’s chips may not be as powerful as Nvidia’s as of early 2026, but its moat is different.
Its chips have easier integration and fewer barriers to development - that’s a big deal to its partners.
The Risks: What Could Go Wrong?
No investment is without risk - and AMD is no different.
Nvidia still dominates. Around 80% of AI accelerators run on Nvidia hardware. That's a massive lead.
AI bubble concerns. Some investors (like Michael Burry) are shorting AI stocks. If there's a market crash, AMD's quantum budget could be reduced.
Quantum is still experimental. AMD's quantum involvement is growing - but quantum computing doesn't exist yet. It's a long-term bet, not a guaranteed win.
AMD Stock Forecast For 2026: What's the Verdict?
Here's what we know:
AMD grew around 70% in 2025.
Revenue has grown 2.65x since 2020 and the company is aggressively expanding into quantum, AI, and hybrid computing.
Their sentiment from Wall Street? Positive.
For investors looking at technology broadly, AMD offers exposure to AI growth without paying Nvidia's premium.
Quantum is a bonus - a growing piece of the business that could pay off big in the coming years.
Is now the time to buy? That depends on your goals and risk tolerance - you should always do your own due diligence before investing.
But AMD's trajectory is clear: they're not just competing with Nvidia - they're carving out their own space.
That space could create an opportunity for investors to profit in the future.
Want more? Our market analysts have even more research, analysis, and data on AMD and several other bubbling potential tech opportunities.
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