Advanced Micro Devices was eyeing a 12th straight day of gains Today, a run that would mark its longest winning streak in roughly two decades. While Nvidia has drawn the lion’s share of attention for its own extended rally, AMD has been quietly building something just as striking.
The stock was trading around $256 on Wednesday, up more than 0.5% on the day and sitting well above its 20-day, 50-day, and 200-day moving averages. Technical indicators pointed strongly bullish, though several oscillators were flashing overbought signals, suggesting the stock may be due for a pause before any further push higher.
What is driving the AMD surge
The momentum is not built on sentiment alone. AMD reported fourth-quarter 2025 revenue of $10.27 billion, a record figure accompanied by earnings per share of $1.53. Its data center segment grew 39% year over year to $5.38 billion, also a record, driven by strong demand for its Instinct GPUs and continued market share gains in server processors through its EPYC line.
CEO Lisa Su has projected data center segment growth of more than 60% annually over the next three to five years as AMD rolls out its MI400, MI450, and Helios platforms. Su also noted that eight of the top ten AI companies are already running production workloads on AMD’s Instinct hardware, a detail that underscores just how far the company has come in the competitive AI infrastructure market.
On the CPU side, EPYC has become the processor of choice for modern data centers. Cloud instances running EPYC grew more than 50% year over year, while enterprise adoption doubled. That quiet dominance has gone largely underappreciated by the broader market, though it is becoming harder to overlook.
The Meta partnership changes the calculus
One of the most consequential recent developments came in late February, when Meta Platforms announced a deal to purchase up to six gigawatts of AI computing capacity powered by AMD’s MI450 chips over five years. The agreement involves customized silicon optimized for inference workloads, not standard off-the-shelf GPUs, and it includes a warrant structure tying Meta’s long-term incentives to AMD’s stock performance.
That structure, with a final tranche vesting only if AMD shares reach $600, signals the depth of the commitment on both sides. AMD is not just selling hardware to Meta. It is embedding itself into Meta’s AI infrastructure roadmap for years to come.
AMD also joined Qualcomm and Arm in a $60 million investment in Wayve, a UK-based autonomous driving startup, announced on April 15. The move reflects a broader strategy of building partnerships across the AI landscape rather than competing in any single vertical.
Should investors chase the AMD rally
With the stock up nearly 30% over the past month and trading at roughly 40 times forward earnings, some analysts are urging caution. That multiple is higher than Nvidia’s, even though Nvidia is growing revenues at nearly twice the rate and reporting stronger margins.
Wall Street analysts remain broadly bullish, with about three quarters of the 49 covering the stock rating it a buy or strong buy, and an average price target near $290. But several voices in the market believe the near-term upside is already priced in.
The week ahead is expected to see AMD consolidate within a range of roughly $252 to $259. A move above $259 could open the door to fresh highs. A pullback below $252 would likely draw the stock toward its next meaningful support level.
For investors already holding AMD, the fundamental story is intact. For those on the sidelines, the more prudent move may be to wait for a cleaner entry rather than chasing a stock that has already had one of its best months in years.
