Is AMD’s New Malaysian AI and Engineering Hub Shifting the Investment Case for Advanced Micro Devices (AMD)?

• In August 2025, Advanced Micro Devices (AMD) inaugurated a 209,000-square-foot office and engineering lab in Bayan Lepas, Penang, Malaysia, focused on advancing semiconductor design and high-performance artificial intelligence computing solutions.
• This expansion is expected to enhance AMD’s growth prospects by strengthening its engineering presence and supporting the broader Malaysian semiconductor ecosystem.
• We'll now examine how AMD's expanding innovation capacity in AI and high-performance computing could influence its updated investment narrative.

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Advanced Micro Devices Investment Narrative Recap

To own AMD stock, you need to believe the company will successfully drive sustained growth in its Data Center and AI segments, leveraging rapid adoption of its EPYC CPUs and Instinct GPUs, despite intense competition and ongoing investment needs. The opening of AMD’s new Penang engineering hub supports innovation capacity, but by itself, is unlikely to materially alter the most important short-term catalyst: the ramp of next-generation AI and server products. The main risk remains geopolitical tension and export controls limiting market access and margin expansion.

One recent announcement tying into this theme is AMD's partnership with Oracle, which integrates AMD Instinct MI355X GPUs into Oracle’s cloud offerings. This aligns with the heightened focus on cloud- and AI-driven revenue growth. Product launches and such alliances remain closely watched, as they bolster the broader narrative that AMD's innovation engine can translate into greater data center and AI market share.

However, it is important to weigh against this optimism the ongoing risks from export restrictions, particularly as …

Read the full narrative on Advanced Micro Devices (it's free!)

Advanced Micro Devices' narrative projects $46.2 billion revenue and $9.0 billion earnings by 2028. This requires 18.5% yearly revenue growth and a $6.8 billion increase in earnings from $2.2 billion today.

Uncover how Advanced Micro Devices' forecasts yield a $178.78 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Some of the lowest analyst estimates reflected much more cautious expectations, projecting revenues of US$44.3 billion by 2028 and emphasizing ongoing export controls and compliance costs. These alternative views help remind you that the implications of news like the Penang hub could reshape both bullish and bearish forecasts in ways worth exploring further.

Explore 112 other fair value estimates on Advanced Micro Devices - why the stock might be worth as much as 70% more than the current price!

Build Your Own Advanced Micro Devices Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Advanced Micro Devices research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Advanced Micro Devices research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Advanced Micro Devices' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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