Advanced Micro Devices Has Sold Off. Here's Why the Bull Case Isn't Broken.

Shares of Advanced Micro Devices (AMD +2.10%) are still down by nearly 7.7% so far in 2026 (as of March 12, 2026), even after the company delivered a strong fourth-quarter 2025 performance. AMD reported revenue of $10.27 billion and adjusted earnings per share of $1.53 in the fourth quarter.

However, the stock has declined on lofty investor expectations, concerns about the company’s ability to compete with Nvidia in the artificial intelligence (AI) accelerator market, and uncertainty about the competitiveness of its next-generation GPUs.

Image source: Getty Images.

The bullish thesis still looks intact

Despite these challenges, AMD’s growth story appears intact. In the fourth quarter, the company’s data center segment generated revenue of $5.4 billion, up 39% year over year. The growth was driven by strong adoption of EPYC server CPUs and accelerating deployments of Instinct AI accelerators across cloud providers and enterprises.

Expand

NASDAQ: AMD

Advanced Micro Devices

Today’s Change

(2.10%) $4.07

Current Price

$197.46

Key Data Points

Market Cap

$315B

Day’s Range

$194.70 - $198.41

52wk Range

$76.48 - $267.08

Volume

244K

Avg Vol

36M

Gross Margin

45.99%

AMD’s long-term AI opportunity is also becoming evident through large hyperscaler partnerships. In February 2026, the company signed a multi-year agreement with Meta Platforms to deploy up to 6 gigawatts of Instinct GPUs. The first phase of the deployment, expected to begin in the second half of 2026, will use Helios systems powered by MI450-based GPUs and sixth-generation CPUs, and running AMD’s ROCm software platform. Previously, in October 2025, the company entered another 6-gigawatt deployment agreement with OpenAI. Such large deployments have created a multiyear revenue pipeline for AMD’s AI infrastructure products.

AMD’s product roadmap also appears impressive. Management claimed that MI450 and Helios systems remain on track for launch in the second half of 2026, while the company is also developing other next-generation products, such as MI400 and MI500 Instinct GPU series, designed to power future large-scale cloud, high-performance computing, and AI workloads.

Finally, AMD’s EPYC CPU franchise is also a crucial part of its AI infrastructure stack. Demand for EPYC processors is strong, since many agentic and emerging AI workloads require high-performance CPUs to work along with GPUs in data centers.

Hence, considering AMD’s accelerating data center business, expanding hyperscaler partnerships, and advancing AI roadmap, the bull case for AMD appears strong for 2026.