AMD the next Nvidia in making? AMD stock rises to all-time high – What is powering AMD rally; here’s the latest AMD stock prediction

Advanced Micro Devices (AMD) stock is on fire. Shares traded near $253 on October 27, 2025, just shy of an all-time high, after a 6.5% surge on Friday. The chipmaker’s rally has pushed year-to-date gains to about 90%, driven by a series of major artificial intelligence (AI) partnerships that are reshaping Wall Street expectations.

AMD closed at $252.92 (+7.63%) on October 25 and rose another 2.21% in premarket trading to $258.52. Its market cap hit $410 billion, with trading volume reaching 1.9 million against an average of 63 million. The 52-week range now stands between $76.48 and $253.39, marking a record high for the stock.

The rally began with a landmark AI chip supply deal with OpenAI on October 6, which triggered a 34% single-day jump. It was followed by a large GPU order from Oracle Cloud on October 14 and an IBM quantum computing breakthrough using AMD chips on October 24, which pushed shares another 7–8% higher.
Following these deals, Bank of America raised its 12-month price target to $300, citing “strong confidence in AMD’s next-gen AI hardware” showcased at the 2025 OCP Summit. HSBC followed with a $310 target, while Jefferies and Mizuho upgraded their forecasts into the high-$200s range.

Analyst sentiment is overwhelmingly positive. Dozens of firms have upgraded AMD to a Buy, pointing to strong AI-driven momentum. However, some remain cautious, noting the stock’s 60x forward earnings multiple and potential overvaluation risks.

In the AI race, Nvidia (NVDA) still dominates with its proprietary CUDA software, which gives it a performance edge. AMD’s alternative, ROCm, is still catching up—but the OpenAI partnership aims to close that gap, potentially making AMD chips a cheaper, scalable alternative for AI computing. In Q2 2025, AMD’s data center revenue rose 14% year over year to $3.2 billion, compared to Nvidia’s $41.1 billion, up 56% YoY. Yet with data center spending projected to hit $3–4 trillion by 2030, AMD doesn’t need to beat Nvidia—it just needs a bigger share. According to 39 Wall Street analysts, AMD’s average price target is $249.92, with highs of $310 and lows of $160. The question now: can AMD’s AI momentum turn it into the Nvidia of 2026?

AMD stock rallies to record levels on AI momentum

Advanced Micro Devices (NASDAQ: AMD) is on a record-breaking run. On October 27, 2025, AMD stock traded around $253 per share, close to its all-time high. The rally follows a 6.5% surge last Friday, adding to a 90% year-to-date gain powered by artificial intelligence (AI) partnerships and chip demand.

AMD closed at $252.92 (+7.63%) on October 25 and climbed another 2.21% in premarket trading to $258.52. The company’s market cap now stands at $410 billion, with shares trading between $241.95 and $253.39 on the day.

OpenAI, Oracle, IBM deals drive Wall Street upgrades

The stock’s rise is backed by a series of high-profile AI deals.

• An OpenAI chip supply deal on October 6 triggered a 34% single-day jump.
• An Oracle Cloud GPU order on October 14 added more momentum.
• On October 24, an IBM quantum computing breakthrough using AMD chips lifted shares another 7–8%, marking a new record high.

Wall Street quickly adjusted forecasts. Bank of America raised its 12-month price target to $300, citing strong announcements at the 2025 OCP Summit. HSBC followed with a $310 target, while Jefferies and Mizuho lifted estimates to the high-$200s range.

Dozens of analysts now rate AMD as a Buy, pointing to accelerating AI momentum. However, a few remain Neutral, cautioning that AMD’s valuation—at 60x forward earnings—might already reflect much of its expected growth.

Can AMD close the software gap with Nvidia?

Nvidia (NASDAQ: NVDA) remains the dominant player in AI computing. Its proprietary CUDA software gives Nvidia GPUs superior performance for AI workloads. AMD’s alternative, ROCm, has yet to reach the same adoption.

But that’s changing fast. The OpenAI partnership aims to enhance ROCm and optimize AMD chips for generative AI workloads. If successful, AMD could become a cost-efficient alternative to Nvidia’s ecosystem—especially as AI hardware demand expands.

Could AMD outgrow Nvidia in 2026?

AMD’s data center revenue hit $3.2 billion in Q2 2025, up 14% year over year, compared to Nvidia’s massive $41.1 billion (up 56% YoY). But analysts note AMD doesn’t need to surpass Nvidia—it just needs a larger slice of a fast-growing market.

Nvidia projects global data center spending could reach $3–4 trillion by 2030. If AMD secures even 20% of new deals—up from its current <10% share—it could outpace Nvidia in growth percentage terms due to its smaller base.

Still, with the stock already near record highs, expectations are steep. According to 39 Wall Street analysts, AMD’s average price target stands at $249.92, with estimates ranging from $160 to $310.

AMD’s surge marks a defining moment in the AI chip race. If its OpenAI partnership delivers, AMD could indeed become the Nvidia of 2026—but only if execution matches the hype.

AMD stock is on a record-breaking streak. It’s trading around $253 after a 6.5% surge Friday, up nearly 90% this year—thanks to major AI partnerships that have Wall Street buzzing.

Now, analysts are racing to catch up. Bank of America lifted its target to $300, HSBC to $310, and others into the high $200s. AMD’s market cap hit $410 billion, making it one of the biggest winners in the 2025 AI boom.

But there’s still a fight ahead. Nvidia’s CUDA software dominates the AI chip world, while AMD’s ROCm lags behind. The new OpenAI partnership could change that, giving AMD’s chips the boost they need to compete head-on.

With analysts setting an average price target of $249.92, and highs at $310, the race is on. If AMD delivers on its AI promise, 2026 could be the year it rivals Nvidia.