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For much of the artificial intelligence (AI) boom, Nvidia (NVDA) has stood at the top, dominating data center GPUs and being the first choice for anything AI. However, the next phase of the AI race may not just be for a single winner. As demand shifts from GPUs to full-stack computing solutions such as CPUs, AI accelerators, and software ecosystems, Advanced Micro Devices (AMD) is emerging as a serious challenger.
AMD entered 2025 with strong momentum and exited the year strengthening its case that it could be the next semiconductor winner. AMD stock has gained 85% in the past year, outperforming the tech-heavy Nasdaq Composite Index ($NASX) gain of 15%. So far this year, AMD stock is down roughly 4%.
