Advanced Micro Devices shares rose on Wednesday.
While it is not immediately clear what could be driving the stock today, investors could be drawing optimism from fresh data showing the chipmaker expanded its presence in the GPU and CPU markets during the third quarter of 2025.
The stock, up over 3%, gained ground after a volatile stretch marked by shifting expectations around hyperscaler chip procurement and rising competitive scrutiny in AI infrastructure.
At the time of writing, the AMD stock was up 3.35% to trade at around $213.04.
AMD picks up GPU and CPU share
According to Jon Peddie Research, AMD’s share of the total GPU market rose to 15% in the third quarter, up from 14% in Q2.
Intel’s market share decreased by 0.8% while Nvidia’s market share decreased by 0.1%.
The figure remains below the 17% recorded in Q3 2024 but reflects incremental momentum in a fiercely competitive landscape dominated by Intel and Nvidia.
AMD also captured an additional percentage point of the CPU market, a development seen as encouraging given the company’s continued efforts to expand its footprint across consumer PCs, servers and AI accelerators.
Market jitter over Google–Meta chip
Shares of major chipmakers, including AMD, swung sharply this week after a report indicated Alphabet’s Google was in talks to supply Meta Platforms with its in-house tensor processing units beginning in 2027.
The prospect of hyperscalers shifting part of their compute buildout toward Google’s ASICs triggered immediate concern over whether future AI demand for GPUs could narrow.
AMD took the steepest hit on Tuesday, closing down 4.2% as investors assessed the potential for Google’s TPUs — cheaper and more energy-efficient than GPUs in certain workloads — to draw long-term demand away from existing AI accelerators.
For AMD, which is aggressively trying to win data-centre AI share and remains in the early stages of that expansion, any perceived customer pivot can create pronounced stock volatility.
But those worries eased on Wednesday as the stock staged a mini comeback.
As per a report from Barron’s, analysts at Morgan Stanley said the market reaction overstated the immediacy of the competitive risk, arguing that neither AMD nor Nvidia faces near-term erosion from commercially deployed ASICs.
“We don’t think Meta’s aspirations are changing: they want to diversify their compute infrastructure,” the analysts were quoted in the report.
The shift toward ASICs is a “long-cycle possibility,” they said, emphasising that the chips offering the strongest return on investment will ultimately win out — but “not right now.”
For AMD, the reassessment buys time. AI compute demand continues to grow across hyperscalers and enterprises, creating substantial room for both GPUs and ASICs.
Nvidia remains the dominant supplier — Google recently purchased roughly $20 billion of its hardware — but AMD has positioned itself as the leading second source for customers seeking an alternative.
The combination of improving CPU and GPU share, stronger consumer PC demand, and a realistic timeline for ASIC adoption helped stabilise sentiment around AMD.
While the competitive landscape remains dynamic, the market’s initial reaction to the TPU report overstated the immediacy of any threat, leaving AMD better supported as attention returns to its long-term AI strategy.
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