Advanced Micro Devices Inc. (NASDAQ: AMD) is charting a notable path of growth that coincides with improving market share figures and increasing investor confidence in its artificial intelligence (AI) strategy. The company's trajectory within the PC gaming sector, in particular, signals a momentum shift as it narrows the gap with industry incumbent Intel Corporation (NASDAQ: INTC).
Data from the latest Steam hardware survey reveals that AMD has expanded its footprint among Windows-based PC gamers. In December, the proportion of Steam's Windows user base utilizing AMD central processing units (CPUs) rose by 4.6 percentage points, bringing AMD to within less than 10 percentage points of Intel's share. This represents a meaningful gain over the previous year, with AMD's penetration climbing from 38.7% to 47.2%, affirming a persistent trend of gamers gravitating toward AMD's processor offerings.
Simultaneously, AMD’s ascending course in the market is bolstered by growing investor enthusiasm for its advancing AI initiatives. The company’s stock has appreciated by approximately 73% over the past 12 months, reflecting favorable sentiment fueled by its strategic collaboration linked with OpenAI, alongside the development and upcoming introductions of AI-specific hardware products. Notable among these are the MI400 series of chips and the forthcoming Helios rack system platform, with expectations set for a 2026 release.
Further reinforcing demand signals are reports concerning Alibaba Group Holding Limited (NYSE: BABA), which is reportedly contemplating a substantial purchase of AMD’s latest AI acceleration hardware. Alibaba is considering an order in the vicinity of 40,000 to 50,000 MI308 accelerator units, suggesting strong near-term enthusiasm for AMD's AI infrastructure components. Such interest from a major cloud services provider underscores the company’s growing footprint in the AI hardware market.
From an analytical standpoint, TD Cowen has articulated a positive stance on AMD, designating the stock as a 'Best Ideas 2026' pick. This recommendation, issued on December 2, highlights the strategic entry opportunity created by recent stock pullbacks. TD Cowen emphasizes AMD's progressive advancements in AI chips, augmented software capabilities, and rising customer engagement as key pillars supporting their outlook. The firm anticipates significant investor benefits associated with the unveiling of the Helios AI platform and ongoing strides in core technology domains.
Reflecting these developments, AMD's share price saw an increase of 2.99% to $230.15 in premarket trading on Monday, according to Benzinga Pro data. This movement occurred amid broader market activity, further indicating investor responsiveness to AMD's growth narrative and product roadmap.