AI Sent AMD Soaring — But This Stock May Be the Better Value Play

AMD (AMD) has been one of the top-performing stocks in the S&P 500 ($SPX). Shares have surged more than 150% this year, driven by robust financial results. Notably, strong artificial intelligence (AI)-led demand for the company's CPUs and GPUs — supported by a broad customer base and sustained AI infrastructure investments — has been a key catalyst behind the rally.

While AMD stock has gained significantly in value, its growth story is far from over. As AI development shifts from training large language models (LLMs) to inference and next-generation agentic AI applications, demand for high-performance computing is expected to remain strong. That trend should benefit not only AMD's Instinct GPUs but also its EPYC server processors, positioning the company to capture growth across multiple segments of the AI infrastructure market.