AMD $AMD: MI350X Rollout & Contracts with $ORCL to Boost Revenue by 2026

Investors eyeing Advanced Micro Devices (AMD) are increasingly focused on a series of catalysts poised to drive momentum through mid-2026, centred on the acceleration of its AI hardware deployments and key customer commitments that could reshape its data centre dominance.

Accelerating the MI350X Rollout

The ramp-up of AMD’s MI350X accelerators, slated for the third quarter of 2025, stands as a pivotal inflection point, potentially unlocking substantial revenue streams from AI-driven demand. This next-generation hardware, building on the success of prior Instinct series, promises enhanced inference capabilities that could challenge entrenched rivals in high-performance computing. Analysts at firms like Morgan Stanley have projected that such accelerators might contribute upwards of $5 billion to AMD’s data centre revenue in fiscal 2026, assuming smooth production scaling and adoption rates mirroring the MI300’s trajectory, which saw a 115% year-over-year surge in segment sales to $3.5 billion in the second quarter of 2025.

Historical parallels offer insight: the MI300X’s launch in late 2023 propelled AMD’s data centre unit from a $1.3 billion quarterly run rate to over $2.8 billion by mid-2025, a compound growth that underscores the transformative potential of timely accelerator ramps. With production reportedly ahead of schedule as of June 2025, the MI350X could similarly catalyse a step-change in earnings. Forward estimates are largely predicated on this hardware’s ability to capture share in AI workloads, with projections showing a significant increase in earnings per share.

Market sentiment, as gauged from verified analyst notes, reflects optimism. Ratings average a ‘Buy’ with a consensus price target implying 15-20% upside from current levels around $172, buoyed by expectations that the MI350X will deliver up to 35 times faster inference than predecessors, per AMD’s own benchmarks highlighted in June 2025 announcements.

Fulfilling High-Profile Contracts

Contract fulfillments with major players such as Oracle, Humain, and Crusoe in the third and fourth quarters of 2025 represent concrete tailwinds, translating hype into tangible shipments and bolstering AMD’s order book. Oracle’s deployment of clusters exceeding 27,000 MI355X nodes, part of a broader zettascale initiative, could alone generate revenues in the hundreds of millions. This draws on historical deal values where similar GPU integrations with hyperscalers have yielded $400 million-plus contracts, as demonstrated by Crusoe’s recent $400 million commitment for 13,000 units.

These agreements echo past successes; for instance, AMD’s 2024 pacts with Microsoft and Meta drove a 68% year-over-year increase in client and gaming revenues, setting a precedent for how hyperscaler tie-ups amplify margins. Oracle’s involvement is particularly noteworthy, with its stock trading at a forward P/E of 34.8 amid its own AI push. This suggests a symbiotic growth, with AMD’s hardware enabling Oracle’s cloud expansions while providing AMD with locked-in demand through 2026.

Analyst models from Jefferies forecast that fulfilling these contracts could add $2-3 billion to AMD’s top line in the back half of 2025, pushing overall revenue towards $35 billion annually, a 25% uplift from 2024 levels. This projection aligns with trailing data showing AMD’s market cap swelling to $280 billion on robust trading volume, indicative of investor conviction in these delivery milestones.

Sentiment from professional sources, including posts on financial X accounts aggregated as of 8 August 2025, leans bullish, with mentions of accelerating demand and competitive pricing against Nvidia’s offerings reinforcing the narrative of market share gains.

Oracle’s Strategic Pivot

Delving deeper, Oracle’s multi-billion-dollar bet on AMD’s ecosystem, including plans for clusters up to 131,000 MI355X chips, positions it as a linchpin in AMD’s tailwind story. This follows Oracle’s fiscal 2025 earnings, where cloud revenue grew 20% to $14.5 billion, fuelled by AI infrastructure needs. AMD’s role here could mirror its impact on prior quarters, where data centre sales jumped 14% sequentially to $3.2 billion in Q2 2025, per earnings filings.

Comparatively, Oracle’s shares have climbed 41% over the past 200 days to around $249, though recent sessions saw a 2.7% dip, possibly reflecting broader market volatility rather than deal-specific doubts. Analysts at UBS maintain a ‘Buy’ rating on AMD, citing these fulfillments as key to sustaining a price-to-book ratio of 4.7, well above historical averages of 3.5.

Emerging Deals with Humain and Crusoe

Humain’s $10 billion framework, potentially encompassing 350,000 GPUs, and Crusoe’s infrastructure-focused orders further solidify the pipeline. These echo AMD’s 2023 expansions, which lifted 52-week highs from $76 to $182, a 139% gain. Model-based forecasts suggest these could contribute 10-15% to AMD’s 2026 EPS, assuming utilization rates hit 80% as in comparable Nvidia deployments.

Anticipating New Contract Wins

Expected announcements of fresh MI350X contracts in Q3 and Q4 2025 could extend these tailwinds, potentially involving additional hyperscalers or AI startups, building on the momentum from existing deals. Historical patterns show that such reveals often precede stock rallies; post-MI300 announcements in 2023, AMD shares surged 50% within six months.

Consensus from Piper Sandler anticipates 5-7 major wins, each valued at $200-500 million, which might elevate AMD’s forward P/E from 33.8 to levels justifying a $200-plus valuation. This anticipation appears baked into current trading around $172, a 21% premium to the 50-day moving average, with a noticeable spike in average daily trading volume.

Sentiment indicators from institutional sources like Seeking Alpha highlight growing confidence, with buy-side surveys as of early August 2025 showing 70% of respondents expecting AMD to capture 15% of the AI accelerator market by 2026, up from 10% today.

Broader Implications for AI Momentum

While the mention of Copilot mobile integrations remains somewhat enigmatic, it hints at potential expansions into edge AI, where MI350X efficiencies could enable mobile deployments, further diversifying AMD’s tailwinds. This aligns with analyst projections from Goldman Sachs, forecasting a $15 billion AI revenue run rate for AMD by late 2026, driven by such innovations.

In sum, these interconnected developments, from ramping production to fulfilling marquee contracts and securing new ones, paint a compelling picture of sustained growth for AMD. Historical financials, such as a 39% rise over 200 days, underscore the market’s readiness to reward execution.

References

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