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AMD Expands AI Footprint With Meta: Can It Outpace NVDA & AVGO?
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Key Takeaways
AMD expands its Meta partnership to strengthen its AI infrastructure footprint.
AMD's Data Center revenues surged 107% to $6.7 billion in Q2 2026.
AMD shares gained 164.5% YTD, outperforming the broader technology sector.
Advanced Micro Devices (AMD - Free Report) is benefiting from accelerating demand for artificial intelligence (AI) infrastructure, expanding hyperscaler partnerships and growing adoption of its EPYC processors and Instinct GPUs. The company recently strengthened its strategic partnership with Meta Platforms to support the latter’s superintelligence infrastructure, enhancing its competitive position against NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) . The collaboration spans CPUs, GPUs, networking, rack-scale systems and software, positioning AMD to capture a larger share of hyperscaler AI investments.
AMD’s Helios rack-scale solutions are undergoing testing at Meta ahead of broader deployment, while EPYC processors power Meta’s Muse AI agent. Meta has deployed millions of EPYC CPUs and plans to adopt sixth-generation EPYC processors. AMD Instinct GPUs support Meta’s AI training, ranking and recommendation workloads, with plans to deploy customized Instinct GPUs based on the MI450 architecture. The collaboration encompasses ROCm software optimization, future MI500 GPUs and gigawatt-scale AI infrastructure. AMD also plans to invest $1 billion in Meta’s equity offering.
AMD’s expanding AI ecosystem strengthens its growth prospects. Partnerships with OpenAI, Anthropic and Microsoft support broader adoption of its Helios platform. In the second quarter of 2026, Data Center revenues surged 107% year over year to $6.7 billion, driven by robust EPYC and Instinct demand. AMD expects the Data Center business to more than double in 2027, while server CPU revenues are projected to increase more than 80% year over year in the second half of 2026 and more than 70% in 2027.
AMD’s expanding AI infrastructure portfolio, stronger hyperscaler partnerships and robust demand for EPYC processors and Instinct accelerators position it well to challenge NVIDIA and Broadcom and drive top-line growth. For the third quarter of 2026, AMD expects revenues of approximately $13 billion, plus or minus $300 million. The midpoint implies growth of roughly 41% year over year and 13% sequentially.
How Competitors Fare Against AMD
AMD’s prospects suffer from stiff competition from companies like NVIDIA and Broadcom, which are major competitors in the AI space.
NVIDIA’s accelerated computing platform remains central to AI training, inference and agentic workloads as customers scale model deployment. In the second quarter of fiscal 2027, revenues rose 106% year over year to $96.2 billion, while Compute & Networking revenues increased 114% to $88.3 billion. Data Center revenues reached $89 billion, up 117%, with Blackwell Ultra driving the expansion.
Broadcom is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software. Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Broadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook.
Advanced Micro Devices shares have surged 164.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 17.4%.
AMD Stock’s Price Performance
Image Source: Zacks Investment Research
AMD stock is overvalued, with a forward 12-month price/sales of 11.57X compared with the Computer and Technology sector’s 5.6X. AMD has a Value Score of F.
AMD’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $7.55 per share, which has been unchanged over the past 30 days. This suggests 81.06% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
AMD Expands AI Footprint With Meta: Can It Outpace NVDA & AVGO?
Key Takeaways
Advanced Micro Devices (AMD - Free Report) is benefiting from accelerating demand for artificial intelligence (AI) infrastructure, expanding hyperscaler partnerships and growing adoption of its EPYC processors and Instinct GPUs. The company recently strengthened its strategic partnership with Meta Platforms to support the latter’s superintelligence infrastructure, enhancing its competitive position against NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) . The collaboration spans CPUs, GPUs, networking, rack-scale systems and software, positioning AMD to capture a larger share of hyperscaler AI investments.
AMD’s Helios rack-scale solutions are undergoing testing at Meta ahead of broader deployment, while EPYC processors power Meta’s Muse AI agent. Meta has deployed millions of EPYC CPUs and plans to adopt sixth-generation EPYC processors. AMD Instinct GPUs support Meta’s AI training, ranking and recommendation workloads, with plans to deploy customized Instinct GPUs based on the MI450 architecture. The collaboration encompasses ROCm software optimization, future MI500 GPUs and gigawatt-scale AI infrastructure. AMD also plans to invest $1 billion in Meta’s equity offering.
AMD’s expanding AI ecosystem strengthens its growth prospects. Partnerships with OpenAI, Anthropic and Microsoft support broader adoption of its Helios platform. In the second quarter of 2026, Data Center revenues surged 107% year over year to $6.7 billion, driven by robust EPYC and Instinct demand. AMD expects the Data Center business to more than double in 2027, while server CPU revenues are projected to increase more than 80% year over year in the second half of 2026 and more than 70% in 2027.
AMD’s expanding AI infrastructure portfolio, stronger hyperscaler partnerships and robust demand for EPYC processors and Instinct accelerators position it well to challenge NVIDIA and Broadcom and drive top-line growth. For the third quarter of 2026, AMD expects revenues of approximately $13 billion, plus or minus $300 million. The midpoint implies growth of roughly 41% year over year and 13% sequentially.
How Competitors Fare Against AMD
AMD’s prospects suffer from stiff competition from companies like NVIDIA and Broadcom, which are major competitors in the AI space.
NVIDIA’s accelerated computing platform remains central to AI training, inference and agentic workloads as customers scale model deployment. In the second quarter of fiscal 2027, revenues rose 106% year over year to $96.2 billion, while Compute & Networking revenues increased 114% to $88.3 billion. Data Center revenues reached $89 billion, up 117%, with Blackwell Ultra driving the expansion.
Broadcom is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software. Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Broadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook.
AMD’s Share Price Performance, Valuation & Estimates
Advanced Micro Devices shares have surged 164.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 17.4%.
AMD Stock’s Price Performance
Image Source: Zacks Investment Research
AMD stock is overvalued, with a forward 12-month price/sales of 11.57X compared with the Computer and Technology sector’s 5.6X. AMD has a Value Score of F.
AMD’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $7.55 per share, which has been unchanged over the past 30 days. This suggests 81.06% year-over-year growth.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.