Advanced Micro Devices AMD is strengthening its position in the AI and data center markets by leveraging a rich partner base that includes the likes of OpenAI, Cohere, IBM, Google, Oracle, HPE, Dell Technologies, Lenovo, Super Micro and others. These collaborations are not only expanding AMD’s data center footprint but also paving the way for rapid enterprise adoption of AI technologies.
AMD’s most significant move is a multi-year partnership with OpenAI to deploy 6 gigawatts of AMD Instinct GPUs for next-gen AI infrastructure. Initial 1-gigawatt deployment of AMD Instinct MI450 GPUs is slated for the second half of 2026. This partnership strengthens AMD’s presence in high-performance computing (HPC) data centers, a key factor in supporting large-scale AI workloads and enterprise adoption worldwide. The deal is expected to boost AMD’s competitive prowess against NVIDIA NVDA.
Under the AMD Cohere collaboration, the latter’s full suite of AI products, including Command A, Command A Vision, Command A Translate, and North, will now run on AMD Instinct GPU-powered infrastructure. Additionally, AMD is incorporating Cohere’s North platform into its internal AI portfolio, strengthening its engineering workflows and enabling secure, private, and compliant AI solutions. Tech Mahindra and IBM are also collaborating with AMD to accelerate AI innovation.
AMD expects Data Center revenues to have grown double-digit both on a year-over-year and sequential basis in the third quarter of 2025, driven by a strong portfolio. AMD’s Data Center revenues are expected to further benefit from the planned launch of the MI400 series in 2026. Our model expects 2025 Data Center revenues to be $14.47 billion, suggesting growth of 15% from the 2024 reported figure.
NVIDIA and Broadcom AVGO are major competitors in the Data Center space. NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators (XPUs). The company expects accelerated demand for XPUs in the back half of 2026 as hyperscale focuses more on inference along with frontier model training.
AMD shares have jumped 79.1% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 19.5% and the Zacks Computer-Integrated System industry’s appreciation of 61.9%.
