Although the race between AMD and Intel is closer than it appears on the surface, AMD currently trades at a lower valuation and seemingly offers more upside potential. Over the past year, Intel has experienced a stronger surge, gaining 322% compared to AMD’s 285%, meaning investors evaluating AMD versus Intel need to look beyond past price charts. Furthermore, long-term projections point to 105% earnings growth for AMD in 2027, contrasted with 36% for Intel, positioning AMD as the superior artificial intelligence chip investment at the time of publication.
Also Read: If You Invest $100 in AMD Every Month, What Could You Have by 2030?
AMD vs Intel: Stock Forecast, AI Growth And Upside Potential
CPUs Are Back At The Center Of AI Data Centers
The competition between the two chipmakers begins with central processing units. Because these processors handle inference and agentic AI workloads, demand for them within artificial intelligence data centers has accelerated. AMD noted that the ratio of CPUs to graphics processing units in these facilities is shifting from historical levels of 1:4 or 1:8 toward 1:1, while projecting that the total server CPU market will expand to $220 billion by 2030.
AMD CEO Lisa Su remarked:
“CPUs are a very critical part of data center infrastructure.”
Server processors represent the most fiercely contested battleground for the two companies. According to Mercury Research, Intel maintains a 65.5% share of that market, though AMD expanded its footprint 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 competitive dynamic shifts further when examining graphics hardware. AMD markets its Instinct data center GPUs to major technology enterprises including OpenAI, Meta Platforms, and Anthropic. During the second quarter, AMD’s data center revenue climbed 107% year over year to reach $6.7 billion, whereas Intel’s data center and AI division advanced 59% to $6.3 billion.
Lisa Su shared during AMD’s Q2 earnings call:
“Demand for both accelerators and CPUs is growing well above our prior expectations.”
In response, market analysts have grown increasingly optimistic regarding AMD’s extended growth trajectory—upgrading the AMD stock forecast—while dialing back their expectations for Intel.
Valuation Could Decide The Best AI Chip Stock
When comparing valuations, the two stocks diverge significantly. Intel’s recent rally has pushed its forward earnings multiple to 63, whereas AMD trades at a forward multiple of 40. While consensus projections point to a 262% surge in Intel’s earnings for the current year—outpacing AMD’s expected 82% increase—that trend reverses by 2027, when AMD’s growth rate is anticipated to accelerate to 105% while Intel’s decelerates to 36%. This discrepancy underpins the more favorable outlook for AMD shares.
Intel CFO David Zinsner noted:
“Customers continue to signal a strong and sustainable spending environment.”
Additionally, AMD projects the total addressable market for artificial intelligence chips will scale to $2 trillion annually by 2030, reinforcing its standing as the top artificial intelligence chip selection between the two competitors.
For investors choosing between the two equities today, prevailing financial metrics favor AMD. Intel’s outlook remains anchored by its dominant position in server processors, but a valuation of 63 times forward earnings leaves minimal margin for error should expansion slow down. Even though their rivalry in CPUs remains close, AMD holds distinct advantages in pricing and artificial intelligence exposure.