Comparing AMD and Intel: Which stock offers more upside potential?

Although the matchup between AMD and Intel is tighter than it appears at first glance, AMD currently emerges as the more attractively priced stock with greater upside potential. Anyone comparing AMD stock to Intel stock needs to look beyond recent performance charts, given that Intel has surged 322% over the past year compared to AMD’s 285% gain. Furthermore, current projections point to 105% earnings growth for AMD in 2027, contrasted with 36% for Intel, positioning AMD as the superior AI chip stock between the two 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 contest between AMD and Intel fundamentally begins with CPUs. Demand for these processors within AI data centers has accelerated because they efficiently manage inference and agentic AI operations. According to AMD, the CPU-to-GPU ratio in these environments is shifting from 1:4 or 1:8 toward a 1:1 balance, while the company anticipates the total server CPU market will climb 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 in the AMD and Intel rivalry. Data from Mercury Research shows that Intel maintains a 65.5% share of that market, though AMD managed to expand 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

This is the area where the dynamics between AMD and Intel begin to shift. AMD markets its Instinct data center GPUs to prominent industry players like 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 (DCAI) division expanded by 59% to hit $6.3 billion.

Lisa Su shared the following during AMD’s Q2 earnings call:

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

Market analysts have grown increasingly optimistic regarding AMD’s long-term expansion trajectory, resulting in upward revisions for the AMD stock forecast, while tempering their expectations for Intel.

Valuation Could Decide The Best AI Chip Stock

When examining valuations, the comparison between AMD and Intel is straightforward. Following its recent rally, Intel trades at 63 times forward earnings, compared to 40 times forward earnings for AMD. While consensus estimates project a 262% earnings surge for Intel this year—surpassing AMD’s expected 82%—that trend reverses by 2027. In 2027, AMD’s growth rate is projected to accelerate to 105%, whereas Intel’s growth is expected to decelerate to 36%. This valuation and growth gap explains why the AMD stock forecast appears more robust than the Intel stock forecast.

Intel CFO David Zinsner noted:

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

Furthermore, AMD projects that the overall market for AI chips will reach $2 trillion annually by 2030, reinforcing its standing as the top AI chip stock selection in the ongoing AMD versus Intel comparison.

For investors choosing between AMD stock and Intel stock at this juncture, the financial metrics favor AMD. Because Intel’s stock forecast continues to rely heavily on its server CPU dominance, its elevated multiple of 63x leaves minimal room for error if growth begins to slow down. Although competition in CPUs remains fierce, AMD’s pricing advantage and broader AI footprint make it the superior AI chip option of the two companies.

Frequently Asked Questions

Which company currently has the higher forward earnings valuation, AMD or Intel?

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

What are the projected earnings growth rates for AMD and Intel in 2027?

The 2027 forecasts call for 105% earnings growth for AMD and 36% earnings growth for Intel.

Who holds the larger share of the server CPU market?

According to Mercury Research, Intel holds 65.5% of the server CPU market, though AMD grew its market share by 7.2 percentage points year over year in the second quarter.

How did AMD’s data center revenue perform in the second quarter?

AMD’s data center revenue increased by 107% year over year to reach $6.7 billion in the second quarter.

What is AMD’s projection for the total AI chip market by 2030?

AMD estimates that the AI chip market will hit $2 trillion per year by 2030.