AMD’s shares closed at $238.76 on October 25, 2025, marking a 3 percent daily gain and pushing the company’s total market value above the $400 billion threshold for the first time. The calculation multiplies the share price by approximately 1.69 billion outstanding shares, resulting in the $400 billion figure. This performance follows a 12.88 percent monthly increase and 59.36 percent year-to-date growth, driven by positive analyst upgrades. Trading volume reached 85 million shares, exceeding the 30-day average by 20 percent.
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Did AI play a role in this increased valuation?
The MI300 series, AMD’s latest AI accelerators, contributed significantly to the valuation surge, with Q3 2025 orders totaling $2.8 billion, up 150 percent from the previous quarter. These chips compete directly with Nvidia’s offerings, providing high-performance computing for large language models and data centers. AMD reported $6.5 billion in data center revenue for the quarter, representing 45 percent of total sales. Partnerships with Microsoft Azure and Oracle Cloud expanded adoption, securing long-term contracts worth $10 billion.
AMD’s enterprise value stood at $413.94 billion, accounting for $26.66 billion in net debt, while its price-to-earnings ratio reached 121.75 based on trailing twelve-month earnings per share of $1.74. The company holds $4.81 billion in cash equivalents against $4.77 billion in cost of sales, maintaining a strong balance sheet. Gross margins improved to 52 percent in the latest quarter, reflecting efficient production scaling. Analysts project 25 percent revenue growth for fiscal 2026.
What about the rest of AMD’s product portfolio?
Beyond AI, AMD’s Ryzen 9000 series CPUs and Radeon RX 8000 GPUs bolstered the stock, with PC client revenue hitting $1.2 billion, a 10 percent year-over-year increase. The EPYC server processors captured 30 percent market share from Intel, supporting enterprise workloads. Recent launches like the Instinct MI325X, offering 1.8x performance over predecessors, attracted hyperscalers. AMD’s fabless model with TSMC ensures supply chain reliability amid global chip demands.
Wall Street analysts raised price targets to $280 following the milestone, with 85 percent rating AMD as a buy. The stock’s beta of 1.8 indicates higher volatility but aligns with sector trends. Institutional ownership stands at 72 percent, including major stakes from Vanguard and BlackRock. Short interest dropped to 2.5 percent, signaling reduced bearish sentiment. Coverage from CNBC and Reuters amplified positive media exposure.
