It finally happened for Advanced Micro Devices (NASDAQ:AMD). After waiting for much of 2024 for things to turn around, AMD saw its share price skyrocket during the second half of 2025.
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Even taking into account the recent double-digit pullback over the past few weeks, AMD remains up close to 80% year-to-date. Indeed, AMD has been on a roll.
The company’s Q3 2025 revenues of $9.2 billion – a new company record – represented 36% year-over-year growth. Making this achievement even more impressive, AMD emphasized that it enjoyed no revenue from shipments of AMD Instinct MI308 products to China in Q3.
Top investor Harsh Chauhan thinks that this market could add some additional tailwinds for AMD in the year ahead thanks to policy changes in Washington.
“AMD will soon be allowed to sell advanced AI chips to Chinese customers, which should benefit AMD’s business in 2026,” predicts the 5-star investor, who is among the very top 1% of stock pros covered by TipRanks.
Chauhan points out that AMD is slated to bring in roughly $34 billion in revenue during 2025, or growth of more than 31% on a year-over-year basis, and analysts are predicting another large increase in 2026 to reach sales of $44.6 billion. The investor notes, however, that these figures don’t include potential sales to China.
“What’s worth noting is that analysts haven’t adjusted their 2026 revenue expectations for AMD following the Trump administration’s rule change, suggesting that the company’s potential gains from China aren’t baked in just yet,” adds Chauhan.
If AMD’s China revenue in the coming year matches levels from 2024, this would lead to another $6.2 billion in sales. This could push its top line numbers to some $51 billion, Chauhan further details.
Taking this $51 billion figure, and assuming that AMD’s price-to-sales ratio remains stable, Chauhan calculates that the company’s market cap would increase by a whopping 60%. For Chauhan, that leads to an obvious call to action.
“Now it would be a good time to buy this semiconductor stock following its recent pullback, as it has the potential to soar impressively in the new year,” concludes Chauhan. (To watch Harsh Chauhan’s track record, click here)
Most of Wall Street is also looking fondly upon AMD. With 29 Buys and 9 Holds, AMD coasts to a Strong Buy consensus rating. Its 12-month average price target of $279.94 would translate into gains of more than 30% in 2026. (See AMD stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.