PC Sales Surge as Microsoft Retires Windows 10, Boosting Dell, HP, AMD, and Intel

Global PC shipments rose 9.4% YoY in Q3, driven by the end of support for Microsoft's Windows 10 operating system. The upgrade cycle is benefiting computer makers like Dell and HP, as well as AMD and Intel. Analysts expect growth to continue through 2026, with PC and printer sales exceeding expectations.

Global PC shipments rose by 9.4% year-over-year (YoY) in Q3 2025, driven by the end of support for Microsoft's Windows 10 operating system. This upgrade cycle has significantly benefited computer makers like Dell and HP, as well as semiconductor giants AMD and Intel. Analysts expect this growth to continue through 2026, with PC and printer sales exceeding expectations, according to a ts2.tech analysis.

In the midst of this PC market resurgence, AMD's stock has been performing exceptionally well. On October 14, 2025, AMD traded around $217, having recently hit an intraday peak of ~$235 after surging on AI news . The stock is up roughly 70–90% year-to-date (YTD), far outperforming peers such as Nvidia, which is up ~40% YTD . AMD's market capitalization is now around $353 billion, making it the third-largest chipmaker globally .

The primary catalyst for AMD's stock surge has been a series of significant AI deals. On October 6, 2025, AMD announced a blockbuster 6-gigawatt GPU deal with OpenAI, which sent the stock up ~30–34% that day . This deal, described as "transformative for the industry," involves supplying AI chips and warrants for a potential ~10% stake in AMD . Additionally, on October 14, AMD expanded its AI footprint by partnering with Oracle, which will deploy 50,000 of AMD’s next-gen MI450 GPUs in 2026 . This news lifted AMD shares by ~3% amid a broader market dip .

AMD's financial performance has also been robust. In Q2 2025, the company reported a record $7.7 billion revenue (+32% YoY), with GAAP EPS of $0.54 (non-GAAP $0.48) . The growth was driven by strong demand for EPYC server CPUs and Ryzen PC chips, while AI accelerators added early revenue . Despite robust sales, gross margin compressed due to heavy R&D spending and an $800M inventory charge on AI chips . AMD guided Q3 revenue to ~$8.7 billion, implying ~$33 billion for FY2025 .

Analysts have a moderately bullish view on AMD. About 60–65% of analysts rate AMD as a Buy, with price targets clustering in the $200–$300 range . However, some analysts caution that the stock's valuation is rich (~90× forward EPS) and there is "little room for error" if growth slows . AMD's short interest is modest (~2.6% of float), and institutions own ~71% of AMD stock, indicating strong institutional backing .

In the competitive landscape, AMD is challenging Nvidia's dominance in AI GPUs and Intel's lead in CPUs. Nvidia dominates ~94% of AI GPU sales, but AMD is positioning itself as an "open" alternative with its Instinct MI300X/MI350X accelerators . In CPUs, AMD's EPYC has captured 25% of the server market, cutting into Intel's base . AMD's recent AI deals and partnerships suggest it could continue eroding rivals' leads, but Nvidia's sheer scale means AMD remains a challenger, not yet a co-equal, in high-end AI compute .

Overall, AMD's stock performance has been driven by a combination of strong AI deals, robust financial results, and the ongoing PC market growth. As PC shipments continue to rise, AMD is well-positioned to benefit from the upgrade cycle, further bolstering its stock performance.