Forget Intel: This Fast-Moving CPU and GPU Innovator Is the Higher-Upside Bet for Long-Term Chip Investors

AMD's accelerating earnings growth and product-development moves could lead to impressive stock-price upside in the long run.

Jan. 29, 2026 at 8:47pm

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Intel's latest quarterly results show the company is struggling to justify its expensive valuation, while another semiconductor company, Advanced Micro Devices (AMD), is making notable progress in AI data center chips through its product-development efforts. AMD is poised to deliver impressive revenue and earnings growth in the long run, making it a better investment option than Intel for long-term chip investors.

Why it matters

The semiconductor market is poised for significant growth, driven by the increasing demand for AI applications. AMD's focus on developing advanced CPUs and GPUs for data centers puts it in a strong position to capitalize on this trend, while Intel is facing challenges in its data center and AI business.

The details

AMD is on track to deliver a 32% increase in revenue for 2025, and analysts expect its earnings growth to accelerate in 2026, following a 20% increase last year to $3.97 per share. The company's upcoming MI400 and MI500 data center GPUs are expected to significantly outperform the previous generation, allowing AMD to compete more effectively against Nvidia. Additionally, AMD's server CPUs are gaining traction, with the company's market share increasing by 3.5 percentage points year over year in the third quarter of 2025 to 27.8%. AMD estimates it could capture more than half of the server CPU market in the long run, as the demand for AI applications drives the growth of the server CPU market.

  • Intel reported a 4% year-over-year drop in revenue in the fourth quarter of 2025.
  • AMD is on track to deliver a 32% increase in revenue for 2025.
  • AMD's earnings grew 20% year-over-year in 2025 to $3.97 per share.
  • AMD's market share of server CPUs increased by 3.5 percentage points year over year in the third quarter of 2025 to 27.8%.

The players

Intel

A leading semiconductor company that manufactures CPUs and other computer components.

Advanced Micro Devices (AMD)

A semiconductor company that develops CPUs, GPUs, and other computer components, competing with Intel in the data center and PC markets.

Nvidia

A technology company that designs and manufactures graphics processing units (GPUs) and other computer components.

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The takeaway

AMD's focus on developing advanced CPUs and GPUs for data centers, combined with its accelerating earnings growth and more attractive valuation compared to Intel, make it a better long-term investment option for chip investors looking to capitalize on the growing demand for AI applications.