Summary:
Explore AMD stock forecasts for 2025 to 2030 and see if AMD has the potential to surpass Nvidia in the AI and chip race.
Advanced Micro Devices (AMD) has been a key player in the semiconductor industry, challenging giant Nvidia with its cutting-edge processors. As AI, gaming, and data centre demand accelerate, investors are closely watching AMD's growth potential through 2025 and into 2030.
In this AMD stock forecast, we explore whether AMD can outperform Nvidia in the long term by analysing financial trends, competitive advantages, market share, and expert projections.
Can AMD's innovation pipeline and strategic partnerships push its stock beyond Nvidia's dominance? Let's explore what the next five years could hold for AMD investors.
As of June 17, 2025, AMD (NASDAQ: AMD) trades at around $126.39, rallying nearly 60% from its April 2025 low, with robust momentum in data centre and AI application segments.
However, AMD lags behind NVIDIA in key areas, most notably platform maturity and proprietary software, creating a spirited debate about whether it can surpass its rival.
For context, Nvidia commands roughly 80–90% of the AI data-center GPU market, backed by its proprietary CUDA ecosystem. AMD trails behind with around 11% share in data-centre AI chips, but it's rapidly gaining with its aggressive AI portfolio.
It created a spirited debate about whether it could surpass its rival, as AMD's undervaluation has drawn intense attention from experts and analysts.
1. AI Acceleration Through MI300 & MI350/MI400
MI300 series already shows strong traction.
At the June 12 "Advancing AI" event, AMD unveiled MI350 and MI400 series chips, powering its Helios AI server (2026 launch). Open standards contrast Nvidia's proprietary NVLink.
OpenAI, Meta, Oracle, and xAI have committed to MI-series adoption; Crusoe plans to purchase MI355X for $400 million in inference workloads.
AMD asserts MI355X outperforms Nvidia's B200 by delivering ~40% more tokens per dollar.
These developments could substantially boost AI revenues from ~$5.5 billion in 2024 to over $7 billion in 2025 for AMD, while Nvidia's remains far larger (projected $177 billion data-center revenue).
2. Valuation Tailwinds
AMD trades at ~25.6× forward P/E versus Nvidia's ~34.0×, and AMD's P/B ratio is ~3.9× vs. Nvidia's ~51×. With an EPS forecast of +53.2% in 2025 and +38% in 2026, AMD appears undervalued.
Major financial institutions have increased their targets (e.g., $120 from $100), with long-term analyst estimates averaging around $184—a 42% upside from current levels.
Despite its robust growth, Nvidia (NASDAQ: NVDA) stands at nearly $144.00, as it still dominates the AI server GPU market (~80–90% share). Its ecosystem—including CUDA—is a strong barrier to entry.
The rollout of the RTX 50-series and Blackwell architecture (B200/HGX NVL72) reinforces its lead.
Europe aims to scale GPU infrastructure fast, with Nvidia playing a foundational role.
Nvidia's projected data centre revenue remains in the hundreds of billions through the next few years.
| Year | AMD Price Forecast | Key Drivers |
|---|---|---|
| End-2025 | $148–170 | MI350 launch, software gains, AI CPU growth |
| 2026 | $180–250 | MI400 rollout, ZT Systems rollout, edge computing gains |
| 2030 | $300–427 | 10% AI GPU share, data center CPU strength, valuation re-rating |
Bullish Case
TipRanks: Forecasts ~53% EPS growth in 2025 and ~39% in 2026 for AMD—outpacing Nvidia—with an average price target of $148 (42% upside).
Nasdaq projects AMD reaching a $427 stock price by 2030 if it captures even 10% of a $400 billion AI GPU market.
TipRanks also note strong fundamentals—high record revenues, improving margins, and under-valuation compared to peers.
Cautious Voices
Bank of America highlights Nvidia's ecosystem lead, challenges in AI GPU adoption beyond China, and PC market weakness—downgrading AMD to Neutral with price targets between $110–155.
KeyBanc cites margin pressures, geopolitical licensing issues, and Intel competition yet maintains a $140 target with a Sector Weight rating.
HSBC downgraded AMD to Reduce ($110), pointing to delayed AI rack launches and lukewarm MI325 demand.
For long-term investors, AMD presents a rare blend of value and growth potential as it is still trading at a relatively modest forward price-to-earnings ratio compared to its sector peers.
That said, AMD is not without volatility. It is very much in the midst of a transition—from a CPU-centric company to one that can challenge Nvidia across a broader spectrum of AI workloads. The stock's trajectory will likely be bumpy, with spikes around product launches, earnings surprises, or macro shifts in semiconductor demand.
For more conservative investors or those wary of high-stakes tech plays, Nvidia might appear the safer choice due to its entrenched lead and immense scale. But for those with higher risk tolerance and a five-to-seven-year horizon, AMDv offers one of the more compelling underdog stories in AI and computing hardware.
A diversified approach—holding both AMD and Nvidia—could allow investors to capture broad AI growth while hedging against single-company execution risk.
In conclusion, AMD is on a powerful growth trajectory fueled by AI chips and server CPUs. Though it's unlikely to dethrone Nvidia by market cap or immediate leadership, AMD's potential to capture meaningful market share—combined with its valuation upside—makes it a compelling rival through 2030.
If MI300/MI350/MI400 execution succeeds, software cohesion improves, and AMD gains even 10% of the AI GPU market, a path to $300–$400/share by 2030 is plausible. However, Nvidia's lead isn't trivial: ecosystem dominance, performance moat, and scale will remain headwinds.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Learn how the IWM ETF tracks the Russell 2000. its holdings, costs, and performance, and where it fits in a diversified investment strategy.
2025-06-17
Discover how gap trading works, the types of price gaps, and how traders use them to spot profitable entry and exit points in volatile markets.
2025-06-17
Learn the difference between Renminbi and Yuan, their usage, currency codes, and roles within China's official and everyday financial system.
2025-06-17
