AMD or Intel: Which Stock Has More Upside Potential?

When comparing AMD and Intel, the race is tighter than it appears on the surface, but AMD currently presents itself as the more affordable option with greater potential for upward movement. Intel has experienced a stronger surge over the past year, climbing 322% compared to AMD’s 285%, meaning investors evaluating AMD stock against Intel stock must look past the price charts. Additionally, earnings projections for 2027 point to a 105% increase for AMD versus 36% for Intel, positioning AMD as the superior AI chip stock between the two at the time of writing.

AMD vs Intel: Stock Forecast, AI Growth And Upside Potential

CPUs Are Back At The Center Of AI Data Centers

Central processing units form the foundation of the rivalry between AMD and Intel. Demand for these processors within AI data centers has increased because they manage inference and agentic AI workloads. According to AMD, the ratio of CPUs to GPUs in these facilities is shifting from 1:4 or 1:8 toward 1:1, with the company projecting the server CPU market to reach $220 billion by the year 2030.

AMD CEO Lisa Su remarked:

“CPUs are a very critical part of data center infrastructure.”

The competition between AMD and Intel is most intense within server CPUs. Data from Mercury Research indicates that Intel maintains a 65.5% market share, though AMD expanded its own share by 7.2 percentage points year over year during the second quarter.

Intel CEO Lip-Bu Tan stated:

“AI is driving unprecedented demand for compute.”

AMD’s GPU Business Gives It An Extra Edge

The dynamics shift when examining graphics processing units. AMD provides Instinct data center GPUs to prominent organizations such as OpenAI, Meta Platforms, and Anthropic. During the second quarter, AMD reported a 107% year-over-year jump in data center revenue to $6.7 billion, while Intel’s data center and AI segment expanded by 59% to reach $6.3 billion.

During AMD’s Q2 earnings call, Lisa Su noted:

“Demand for both accelerators and CPUs is growing well above our prior expectations.”

Financial analysts have grown more optimistic regarding AMD’s long-term expansion, upgrading the AMD stock forecast, while moderating their expectations for Intel.

Valuation Could Decide The Best AI Chip Stock

When evaluating valuations, the comparison between AMD and Intel diverges significantly. Intel’s recent surge places its stock at 63 times forward earnings, compared to 40 times for AMD. While consensus projections point to a 262% surge in Intel’s earnings for the current year—outpacing AMD’s expected 82%—that trend reverses in 2027, when AMD’s growth rate is projected to accelerate to 105% while Intel’s moderates to 36%. This discrepancy explains why the AMD stock forecast appears more robust than Intel’s outlook.

Intel CFO David Zinsner stated:

“Customers continue to signal a strong and sustainable spending environment.”

Furthermore, AMD estimates that the total addressable market for AI chips will reach $2 trillion annually by 2030, reinforcing its standing as the preferred AI chip stock in this comparison.

For investors choosing between AMD stock and Intel stock at this time, current financial metrics favor AMD. Although Intel’s stock forecast continues to rely on its dominant position in server CPUs, a forward multiple of 63 times leaves little margin for error if expansion slows down. While the two companies remain closely matched in CPU market share, AMD holds the advantage in pricing and artificial intelligence reach.

?Frequently Asked Questions

01Which company currently holds a larger share of the server CPU market?

Intel maintains the lead in the server CPU market with a 65.5% share, according to Mercury Research, though AMD gained 7.2 percentage points of market share year over year in the second quarter.

02How do the forward earnings valuations of AMD and Intel compare?

Intel trades at 63 times forward earnings, whereas AMD trades at a lower valuation of 40 times forward earnings.

03What are the projected earnings growth rates for 2027?

The earnings forecast for 2027 projects 105% growth for AMD, compared to a projected 36% growth rate for Intel.

04What is the projected size of the AI chip market by 2030 according to AMD?

AMD estimates that the total addressable market for AI chips will reach $2 trillion a year by 2030.