A few months back, Wall Street analysts were generally bearish on AMD's AI GPU business, with Wolfe Research noting in December 2024 that "AMD won’t be in a position to guide AI for CY25." The prevailing sentiment was perfectly captured by the president of comma.ai, George Hotz, when he declared in January 2025 that "nobody at comma wants to deal with AMD." However, things have finally started to improve for AMD, as pointed out by JP Morgan analyst Harlan Sur in his latest note.
To wit, JP Morgan recently held investor meetings with AMD's CEO, Lisa Su, and came away with the "view that the [AMD] team is incrementally more confident on driving strong double-digits % growth (>20% in our view) and stronger earnings growth in CY25."
Sur identified four major catalysts for AMD:
- Continued market share gains in the server CPU segment.
- Continued market share gains in the desktop/notebook CPU segment, concurrent with improving demand trends.
- Growth in the company's cyclical businesses (gaming/embedded).
- "Strong growth" in AMD's AI GPU business, to the tune of over 60 percent in 2025 alone.
On AI GPUs, Sur notes that AMD is building momentum ahead of "a strong 2H ramp of its next-gen MI350 accelerator platform." As an illustration of this momentum, Sur points to Oracle's recent announcement relating to a multi-billion dollar order for the MI355 GPU, "with an initial tranche of 30K MI355X next-gen GPUs, to build a cluster targeted at both training and inferencing workloads)."
What's more, the JP Morgan analyst believes that AMD is now working hard to transition its existing major customers - Microsoft, Meta, Oracle - to the MI350 platform by mid-year, "ahead of its rack-scale (>100K GPUs per cluster) next gen MI400 platform in CY26."
Finally, Harlan Sur notes:
"Overall, the key message is that the team’s strong and diversified data center/enterprise/client compute portfolio will drive strong growth in CY25 - combination of share gains, improving demand/cyclical trends, and growing momentum for its next-gen AI compute solutions."
Meanwhile, in a related development, Reuters is now reporting that TSMC is urging NVIDIA, AMD, and Broadcom to buy a stake in a possible joint venture between Intel and TSMC, whereby the latter would principally operate the former's foundry division.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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