Highlights

  • Advanced Micro Devices shares rose nearly 2% in Thursday’s session.
  • The move comes as the company prepares to roll out new data center GPUs for AI workloads.
  • Data center operations remain AMD’s largest revenue contributor so far in 2025.

Shares of Advanced Micro Devices Inc. (NASDAQ:AMD) moved higher on Thursday, rising about 1.93% to USD 227.92 during the session. The price change came as market participants continued to assess the company’s positioning in the data center and artificial intelligence hardware segment, where AMD is expanding its product lineup.

AMD is widely known for supplying chips used in consumer electronics, including gaming consoles and automotive systems. In recent years, however, attention has increasingly shifted toward its role in supplying graphics processing units (GPUs) for data centers, which are central to AI model training and deployment.

Positioning in a Competitive AI GPU Market

The data center GPU market remains dominated by Nvidia (NASDAQ:NVDA), but AMD has been narrowing the gap with successive product launches. Its current flagship data center GPU, the MI355X, is built on the company’s Compute DNA 4 architecture and is designed for large-scale AI workloads.

According to the company, some large data center operators have already deployed these chips. Oracle, for example, placed orders totaling more than 131,000 MI355X units last year. This adoption has contributed to AMD’s growing presence in the AI-focused data center segment.

Upcoming MI450 Series and Performance Claims

Later this year, AMD plans to begin shipping a new lineup of data center GPUs known as the MI450 Series. These chips are designed to work with specialized hardware and software to form an integrated rack-scale system called Helios.

The company has stated that, in this configuration, MI450-based systems can deliver up to 36 times higher performance compared with earlier-generation GPUs such as the MI355X. The launch is scheduled to coincide with rising demand for higher-performance AI infrastructure.

At the same time, competitors are also advancing their product roadmaps. Nvidia has indicated plans to roll out GPUs based on its next-generation Rubin architecture in the second half of the year, underscoring the ongoing pace of development in the sector.

Data Center Revenue and Long-Term Outlook

Financially, AMD’s data center segment has become its largest contributor. During the first three quarters of 2025, the company generated total revenue of USD 24.3 billion, with the data center unit accounting for USD 11.2 billion of that amount, driven largely by AI GPU sales.

AMD is scheduled to report its fourth-quarter results on February 4, which will complete what the company has described as its largest year to date in the data center market. Looking further ahead, AMD has outlined a potential long-term revenue opportunity of up to USD 100 billion for its data center business over the coming years.

Part of that outlook includes a partnership announced with OpenAI last October, under which AMD is expected to supply up to 6 gigawatts of GPU capacity by 2030, beginning with MI450 Series shipments in the second half of 2026.