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Nvidia remains the GPU market leader with a 92% market share in the third quarter of 2025. But AMD (NYSE:AMD) has been chipping away at its share in the market. According to a recent report, for Q3 of 2025, AMD’s market share increased 0.8% from a quarter ago while Nvidia’s market share decreased 1.2% in the period. Small gains, but AMD continues to win contracts from other tech leaders who want to reduce their reliance on Nvidia.

 
AMD’s Financials

AMD’s last reported third quarter revenues grew 36% to 9.25 billion, ahead of $8.74 billion expected by the market. Adjusted EPS came in at $1.20, also ahead of the $1.16 market estimate.

By segment, its data center business which includes standard central processing units and GPUs grew 22% to $4.34 billion. The market was looking for revenues of $4.13 billion. Client revenue grew 46% to $2.75 billion, ahead of the market’s outlook of $2.61 billion consensus. Revenue from gaming grew 181% to $1.30 billion and was also ahead of the consensus of $1.05 billion.

Last quarter, AMD did not see any revenue from chips sold to China. That should change soon. Late last year, AMD got approval to ship AI GPUs to China. In April of 2025, AMD had orders for ~$1.6 billion worth of chips before the US government had restricted shipment of AI chips to China. Since then, the government has worked with both AMD and Nvidia to arrive at a solution. Under the new rules, the chip makers can send less powerful chips to China. AMD has built the MI308 to supply to China. Reports suggest that it already has a big order from Alibaba for these chips. AMD has agreed to pay 15% of its revenues from sales to China to the U.S. Government.

For the fourth quarter, AMD expects revenue to be approximately $$9.6 billion, compared with the analyst expectations of $9.15 billion.
 

AMD’s Growing Share

AMD has been focused on upping the ante against Nvidia. Some of its efforts appear to be paying off. Last quarter, AMD announced a partnership with OpenAI where AMD became the core preferred partner to deploy 6 gigawatts of AMD GPUs to power OpenAI’s next generation AI infrastructure. The first 1-gigawatt deployment of AMD Instinct MI450 GPUs is expected to begin in the second half of 2026.

OpenAI has traditionally relied on Nvidia for its chips, and the latest partnership is part of OpenAI’s strategy to reduce reliance on Nvidia’s offerings. Meta is another player that has been looking at reducing its reliance on Nvidia. A recent news report suggests that Meta intends to purchase MI455X AI accelerators from AMD as is scales back its in-house ASIC plans. Meta was AMD’s top AI accelerator customer in 2025, and accounted for nearly 42% of its AI GPU sales

AMD also recently released its Helios rack scale design that supports the new Open Rack Wide specification. Compute infrastructure is the foundation of AI, and there is a growing demand that is driving an unprecedented expansion from 100 zettaflops of global compute capacity to a projected 10+ yottaflops in the next five years. AI infrastructure at yotta-scale requires an open, modular rack design that can evolve across product generations, combining leadership compute engines with high-speed networking to connect thousands of accelerators into a single, unified system.

The AMD Helios rack-scale platform is projected as the blueprint for yotta-scale infrastructure that can deliver up to 3 AI exaflops of performance in a single rack. The design focuses on delivering maximum bandwidth and energy efficiency for trillion-parameter training. AMD has already tied up with Oracle to offer the first publicly available AI supercluster powered by the AMD Helios rack design.

AMD’s stock is currently trading at $231.83 with a market capitalization of $377.2 billion. It was trading at a 52-week high of $267.08 in November last year. The stock has been climbing from the low of $76.48 that it was trading at in April last year.

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