Advanced Micro Devices (AMD Stock) has spent 2025 transforming from a “credible challenger” to a serious contender in the AI chip arena. The company’s ambitious roadmap, aggressive product launches, and growing adoption among leading AI players have positioned AMD as a key player in the accelerating AI market.
This year, AMD ramped up its accelerator lineup, with the MI325X heading into mass production and the MI350 scheduled for later in 2025. Beyond that, the company unveiled plans for a new AI server platform set for 2026. These moves signal AMD’s commitment to expanding its footprint in AI data centers and high-performance computing. Perhaps the most notable endorsement came from OpenAI, which is expected to adopt AMD’s latest chips—putting major industry logos behind its strategic roadmap.
AMD Stock Performance and Market Sentiment
The market has responded positively. AMD shares have surged over 30% year-to-date, even amid occasional volatility from data-center earnings fluctuations and export-license uncertainties. Following a summer dip, the stock continues to trade within a wide 52-week range of $76 to $187, highlighting both the excitement and risk surrounding AI-related equities.
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The Nvidia-Intel Deal: A Curveball for AMD?
The week introduced an unexpected twist: Nvidia’s (NVDA) $5 billion investment in Intel (INTC), coupled with a multi-year collaboration to integrate Nvidia’s NVLink into Intel’s x86 CPUs and co-develop PC SoCs combining Intel processors with RTX GPU chiplets.
On the surface, this deal strengthens Nvidia’s moat in both data-center and client markets, potentially creating new competition for AMD. Yet the stake is relatively small compared to Nvidia’s scale, and the product timelines are multi-year, limiting immediate competitive impact.
Bank of America Analyst Maintains Bullish AMD Outlook
Despite market jitters, Bank of America’s top analyst Vivek Arya reaffirmed his buy rating for AMD, keeping a $200 price target—roughly 27% above current levels. Arya cites AMD’s ability to capture AI-driven growth while gradually gaining CPU market share from Intel, even in light of Nvidia’s strategic move.
Interestingly, Arya suggests that the Intel-Nvidia partnership may indirectly benefit AMD. Since the collaboration centers on x86 architecture—a platform Intel licenses to AMD—a stronger x86 ecosystem could support AMD’s CPU and server business in the long term.
Arya’s team also reiterated a buy rating on Nvidia, with a $235 target and a 37x multiple on projected 2026 earnings, citing Nvidia’s dominant position in AI compute and networking markets.
Key Takeaways for Investors
- AMD shares remain below Arya’s $200 target, offering potential upside.
- Nvidia’s tie-up with Intel strengthens the x86 ecosystem, indirectly benefiting AMD.
- AMD has room to expand its AI and data-center presence without facing immediate new headwinds.
Breaking Down the Nvidia-Intel Deal
Nvidia agreed to purchase $5 billion of Intel stock while partnering on multiple generations of custom data-center and PC products. Intel will design and manufacture custom x86 CPUs incorporating NVLink, while Nvidia will integrate these chips into its rack-scale AI platforms. In essence, Nvidia expands its x86 presence, while Intel gains access to Nvidia’s powerful GPU technology.
From a market perspective, Nvidia continues to dominate AI data-center accelerators, with independent trackers estimating over 90% share. Intel, meanwhile, benefited from the optics and strategic positioning, with its stock jumping 23% on the announcement.
Product Roadmap and Market Implications
The partnership aims to develop integrated laptop SoCs combining Intel CPUs with Nvidia RTX GPU chiplets, potentially helping Intel reclaim PC market relevance. While these products are years from launch, the move reinforces Nvidia’s AI moat and bolsters Intel’s design wins in both client and data-center markets.
For AMD, this collaboration does not pose immediate competitive pressure. The x86 focus supports AMD’s CPU ecosystem, and the company retains a robust growth runway in AI accelerators, data-center deployments, and server platforms.
Frequently Asked Questions
What is AMD’s current position in the AI chip market?
AMD has emerged as a major player in AI accelerators, gaining traction with data centers and AI firms like OpenAI.
How has AMD stock performed in 2025?
AMD shares are up over 30% year-to-date, reflecting strong AI growth momentum despite volatility in the tech sector.
What impact does the Nvidia-Intel deal have on AMD?
In the near term, AMD faces minimal impact; the deal may even strengthen the x86 ecosystem, indirectly benefiting AMD.
What are AMD’s upcoming AI products?
AMD is ramping up MI325X production, plans MI350 later in 2025, and is developing a new AI server platform for 2026.
What is Bank of America’s view on AMD stock?
Bank of America analyst Vivek Arya maintains a buy rating for AMD with a $200 price target.
How does the Nvidia-Intel partnership work?
Nvidia invested $5 billion in Intel and will collaborate on custom x86 CPUs with NVLink and integrated PC SoCs.
Why could the Intel-Nvidia collaboration benefit AMD?
The partnership strengthens the x86 ecosystem, which AMD relies on for CPUs and servers, supporting long-term growth opportunities.
Conclusion
AMD’s 2025 performance demonstrates its growing influence in the AI and high-performance computing markets. With a strong lineup of AI accelerators, strategic partnerships, and adoption by major AI players like OpenAI, the company continues to capitalize on the AI boom. Despite Nvidia’s multi-billion-dollar deal with Intel, AMD maintains a robust growth trajectory, supported by a strengthened x86 ecosystem and its ability to gain CPU market share.
