In 2023, AMD trailed Nvidia in AI, with Nvidia stock rising 1160% compared to AMD’s 230%. But in 2025, AMD surged, up 80% while Nvidia rose 35%. AMD’s comeback could make it a top AI stock in 2026.

AMD’s growth is fueled by improvements in software, with its ROCm software downloads up 10 times year over year. Nvidia’s cloud GPU shortage could push clients to AMD for computing hardware, potentially shifting the industry dynamic.

AMD aims for a 60% CAGR in its data center division through 2030, with a companywide CAGR of 35%. However, AMD’s stock trades at a premium over Nvidia. Investors must consider if AMD’s potential growth justifies the premium.

Investors should weigh the potential of AMD against other stocks. The Motley Fool didn’t include AMD in its top 10 stocks to buy now, highlighting the need to consider other options for potential returns. Stock Advisor has historically outperformed the S&P 500.

Read more at Yahoo Finance: Will AMD Be a Must-Own AI Stock in 2026?