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Zacks Rank #3 (Hold) stock Advanced Micro Devices is a leading fabless semiconductor company. The term "fabless" means that AMD designs the blueprints for its hardware and outsources the physical production to manufacturing factories like Taiwan Semiconductor.AMD has three major product segments, including:
· Central Processing Units (CPUs): AMD's Ryzen chips power computers to run everyday tasks, operating systems, and applications in laptops and desktops.
· Graphics Processing Units (GPUs): Hardware optimized for handling complex mathematical visual data.
· Data Center Chips: High-performance hardware that powers massive cloud computing networks, enterprise servers, and artificial intelligence models.
Essentially, AMD designs the computational brains that power modern electronics.
AMD Benefits from the Data Center Boom
Although semiconductor leader NVIDIA owns the lion's share of the AI accelerator market, AMD is a critical secondary supplier. With NVIDIA's GPUs often sold out, AMD's GPU lineup allows it to capture spillover demand. Additionally, the AI and data center markets are experiencing blistering growth that is unlikely to slow any time soon. In other words, AMD benefits from a structural tailwind and a massive total addressable market (TAM) expansion.
AMD Hyperscaler Deals Provide Revenue Visibility
AMD has landed several multi-year, large-scale deployment commitments from major hyperscalers like Meta Platforms and OpenAI for its Helios infrastructure systems. These long-term deals provide AMD with long-term revenue visibility. Zacks Consensus Analyst Estimates suggest that AMD will grow its top-and-bottom-line financial results at a healthy mid double-digit clip through 2027.
AMD & Microsoft Expand Partnership
Monday, AMD and Microsoft announced an expanded strategic partnership spanning AMD GPUs, CPUs, and software on MSFT Azure. According to the press release, "Microsoft will ramp AMD Helios at scale on Azure to power frontier model inference," and the two companies will integrate AMD silicon with Azure to "scale networking performance across the fleet."
AMD's EPS Impressive Surprise History
AMD has proven itself to be an expectation breaker. The company has beaten Zacks Consensus Analyst EPS Estimates for a staggering 29 consecutive quarters.
AMD Offers Pullback Buy Zone
AMD shares are retreating to the 10-week moving average for the first time since breaking out in early 2026. Typically, the first pullback to the 10-week moving average after a massive breakout offers investors an attractive reward-to-risk buy zone.
Bottom Line
Advanced Micro Devices stands out as a highly resilient powerhouse in the semiconductor landscape. The company's numerous long-term deployment deals with tech giants mean that its double-digit revenue growth will continue well into the future.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: AMD, Taiwan Semiconductor, NVIDIA, Meta Platforms and Microsoft
For Immediate Release
Chicago, IL – July 21, 2026 – Today, Zacks Investment Ideas feature highlights Advanced Micro Devices (AMD - Free Report) , Taiwan Semiconductor (TSM - Free Report) , NVIDIA (NVDA - Free Report) , Meta Platforms (META - Free Report) and Microsoft (MSFT - Free Report) .
AMD: Hyperscaler Deals Drive Growth
Zacks Rank #3 (Hold) stock Advanced Micro Devices is a leading fabless semiconductor company. The term "fabless" means that AMD designs the blueprints for its hardware and outsources the physical production to manufacturing factories like Taiwan Semiconductor.AMD has three major product segments, including:
· Central Processing Units (CPUs): AMD's Ryzen chips power computers to run everyday tasks, operating systems, and applications in laptops and desktops.
· Graphics Processing Units (GPUs): Hardware optimized for handling complex mathematical visual data.
· Data Center Chips: High-performance hardware that powers massive cloud computing networks, enterprise servers, and artificial intelligence models.
Essentially, AMD designs the computational brains that power modern electronics.
AMD Benefits from the Data Center Boom
Although semiconductor leader NVIDIA owns the lion's share of the AI accelerator market, AMD is a critical secondary supplier. With NVIDIA's GPUs often sold out, AMD's GPU lineup allows it to capture spillover demand. Additionally, the AI and data center markets are experiencing blistering growth that is unlikely to slow any time soon. In other words, AMD benefits from a structural tailwind and a massive total addressable market (TAM) expansion.
AMD Hyperscaler Deals Provide Revenue Visibility
AMD has landed several multi-year, large-scale deployment commitments from major hyperscalers like Meta Platforms and OpenAI for its Helios infrastructure systems. These long-term deals provide AMD with long-term revenue visibility. Zacks Consensus Analyst Estimates suggest that AMD will grow its top-and-bottom-line financial results at a healthy mid double-digit clip through 2027.
AMD & Microsoft Expand Partnership
Monday, AMD and Microsoft announced an expanded strategic partnership spanning AMD GPUs, CPUs, and software on MSFT Azure. According to the press release, "Microsoft will ramp AMD Helios at scale on Azure to power frontier model inference," and the two companies will integrate AMD silicon with Azure to "scale networking performance across the fleet."
AMD's EPS Impressive Surprise History
AMD has proven itself to be an expectation breaker. The company has beaten Zacks Consensus Analyst EPS Estimates for a staggering 29 consecutive quarters.
AMD Offers Pullback Buy Zone
AMD shares are retreating to the 10-week moving average for the first time since breaking out in early 2026. Typically, the first pullback to the 10-week moving average after a massive breakout offers investors an attractive reward-to-risk buy zone.
Bottom Line
Advanced Micro Devices stands out as a highly resilient powerhouse in the semiconductor landscape. The company's numerous long-term deployment deals with tech giants mean that its double-digit revenue growth will continue well into the future.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.