The artificial intelligence (AI) supercycle is significantly benefiting chipmakers, with Advanced Micro Devices (AMD) and Intel (INTC) positioned to capitalize on this trend. However, a closer examination reveals that AMD stands out as the stronger long-term investment. The company reported a remarkable 34% year-over-year revenue increase in Q4, reaching $10.3 billion, with its data center revenue soaring 39% to $5.4 billion. This momentum is expected to continue, with projected Q1 2026 revenue of approximately $9.8 billion, showcasing AMD’s robust growth in AI-related markets.

In contrast, Intel’s performance remains inconsistent, with a 4% revenue decline in Q4 and flat annual growth. While its data center and AI segment saw some improvement, the overall picture is muddled by challenges in its foundry business and declining client computing revenue. As AMD continues to establish itself in high-demand areas like data center CPUs and AI accelerators, its lower risk profile makes it a more attractive option for investors.

For market professionals, the key takeaway is that AMD’s established position and strong growth trajectory in the AI sector may offer a more reliable investment compared to Intel’s ongoing turnaround struggles.

Source: fool.com