AMD stock has seen a 166% increase compared to Intel's 46% decline in the last five years.

From Nasdaq: 2025-03-25 09:53:00

The semiconductor industry is shifting, with Intel falling behind as data center operators demand more powerful chips for AI models. AMD (NASDAQ: AMD) is benefiting, with a 166% stock increase compared to Intel’s 46% decline in the last five years.

AMD’s data center GPU market entry in 2023 has led to over $5 billion in AI revenue, nearly 20% of its total. The pending ZT Systems acquisition could boost AMD’s data center solutions, narrowing the gap with Nvidia and driving growth in its client CPU segment.

Investors should consider AMD’s potential in the data center and CPU markets, but also be aware of risks like revenue declines in certain chip sectors. Intel remains a strong competitor, controlling the majority of the x86 CPU market and outspending AMD in research and development.

While Nvidia leads in AI chip systems, AMD projects the market to reach $400 billion by 2027. With strong data center growth and a low stock valuation, analysts expect AMD’s earnings to grow by 28% annually, offering investors a chance to outperform the market.

Before investing in Advanced Micro Devices, consider the 10 best stocks identified by The Motley Fool Stock Advisor team. While AMD wasn’t on the list, past picks like Nvidia have seen significant returns. Stock Advisor provides guidance on building a successful portfolio and has outperformed the S&P 500 since 2002.



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