Intel vs. AMD: Intel Stock Tops a Four-Decade High, but AMD May Be the Better Buy

TradingKey - On April 24, Intel’s (INTC) shares soared to their highest level since 1987 following a strong earnings report. The rally highlighted how quickly sentiment has shifted for Intel stock, and illustrated the market waking up to a new source of demand in data centers. Yet the same forces lifting INTC stock are opening the door for its biggest rival. A brewing CPU upgrade cycle getting underway across hyperscalers and large enterprises could mean that Advanced Micro Devices (AMD) is set to win even more.

Intel Reports High Demand for CPUs

The results from Intel's most recent quarter show continued growth for data center demand with a particularly strong demand for server Central Processing Units (CPUs). Management exceeded analysts' expectations for earnings results, which led to a positive reaction from investors, resulting in renewed confidence regarding Intel's ability to provide a key piece of AI infrastructure.

Moreover, analysts said the results are a big narrative showcasing that CPUs are playing an increasingly important role in the AI infrastructure. Also cited are robust visibility, supply tightening, and end-stage interest providing buyers a motivation to take action on the long-end, and accept higher prices in certain cases.

Ultimately, the transition in the data center from a heavy GPU reliance to a more balanced mix of CPUs and accelerators benefits Intel, and validates AMD, as customers seek out high performance, efficiency, and rapid scale.

The CPU Boom Derives from Agentic AI Demand

The next step up in AI use includes not only training and inferencing on large GPUs. Agentic AI (software agents that plan, orchestrate, and engage in multi-step tasks) is a new class of workloads that flow differently through the stack.

These need much more pre-processing, data routing, context management, and I/O coordination than just simple single-query inferencing. Lots of that work is CPU-bound, so more cores, more memory bandwidth, and tighter CPU-GPU coupling are required. As implementations mature from pilots to production services, carriers are coalescing around server designs with more budget for CPUs and platform software. This is driving a structural increase in CPU demand that sits atop an already furious accelerator arms race.

The signs of supply tightness are already there. These reports are usually absurdly positive too early in an AI platform cycle; it’s unusual for server CPUs to be in short supply. Both Intel and AMD stand to benefit from pricing and mix improvement in such an environment to find some margin upside as demand outstrips near-term supply.

Where Do Intel and AMD Stack up Today?

Intel and AMD are competing in server CPUs, client CPUs, and now in platforms that integrate CPUs with accelerators and networking. Intel is still deeply entrenched in data centers with a large installed base and long-established software and ecosystem relationships.

AMD, on the other hand, has pushed its lead in performance-per-watt and core density with its EPYC line, gaining share among hyperscalers and cloud providers. On the accelerator front, Nvidia (NVDA) is the undisputed leader, but AMD’s Instinct roadmap is progressing, and the number of wins with major AI customers is increasing.

Both companies are also confronted with changing buyer trends. Customers demand choice, they want faster time to deploy, and they want open software stacks that can evolve as workloads evolve. It's that dynamic that tends to reward those that can deliver on performance roadmaps, and still keep their pricing malleable and contracts understated.

In CPUs, Why AMD Could Pull Ahead

The case for AMD in CPUs is architecture efficiency, scaling, and a cadence of platform updates that really fit with AI-era needs. Morgan Stanley (MS) analysts have argued that AMD’s general-purpose server CPUs do have a product advantage right now, and they see the company building a strong share position over time. The next-generation, “sixth-generation” EPYC server processors (codenamed Venice) are aimed at providing higher throughput and efficiency, which matters as agentic AI leads to more CPU intensity.

With demand likely to exceed supply, AMD can also push prices of high-performance SKUs. That pricing leverage, coupled with a business mix toward premium server parts, would undergird margin expansion.

Now Intel’s results are showing the CPU tide is rising, but in configurations where performance-per-watt, total cost of ownership, and speed to deploy quickly matter, AMD is winning more sockets. Those wins can compound as customers standardize on a platform across regions and workloads for consistency.

What to Watch This Year: Key Milestones and Catalysts for AMD?

This year’s platform for AMD builds on two fronts: growing server CPU demand and a nascent GPU and rack-scale narrative.

On CPUs, tight supply and the shift towards AI-heavy general-purpose compute should lead to improvements in visibility and pricing. D.A. Davidson analysts upgraded AMD, citing a structural lift in CPU demand and a clearer line of sight regarding how AMD will be positioned in AI data centers.

On accelerators, AMD envisions the next steps of the Instinct line, with the MI455 in near-term deployments and the MI450 family expected in the second half of 2026. They’re predicting over 60% annual growth in data center revenue over the next three to five years, a huge step up from the 2025 baseline. Partnerships are a global business with strong momentum.

AMD has multiyear deals to support Meta Platforms (META) and OpenAI with capacity in gigawatts of GPUs, with reports that there is more interest from builders such as Anthropic. And as those deployments scale, they can pull through more EPYC CPUs, adding to share gains on the server side.

The market has already moved. AMD's stock has been rallying strongly recently and the AMD stock price briefly soared past the $500 billion market cap mark, which points to investors having confidence in the company's CPU and GPU roadmaps. Just a handful of U.S. companies, such as Micron Technology (MU) after its own rally, sit above that bar. While the valuation has expanded, the fundamental driver is still earnings power that is tied to data center growth.

Should You Buy AMD Now?

For investors weighing AMD stock and Intel stock after the April rally, the choice comes down to earnings resiliency and exposure in the AI buildout.

Intel’s results show that CPUs are at the heart of the next wave in AI infrastructure, a positive sign for both companies. AMD, on the other hand, has product momentum in server CPUs, growing visibility in accelerators, and partnerships with large AI customers. That mix supports an argument for accelerating revenue and earnings growth as deployments ramp.

Some risks persist. In the near term, upside may be hampered by supply constraints. Intense competition will persist from Intel in CPUs and Nvidia in accelerators. Software and ecosystem execution will be just as important as raw silicon performance, so we should expect to see some knee-jerk reactions on that front too. Valuation also requires discipline; following a strong run, investors should size positions according to time horizon and risk tolerance.

For long-term buyers who believe the agentic AI cycle will continue to drive strong CPU demand for several years, AMD is a fairly balanced way to play the theme, with opportunities for market share gains, margin expansion, and operating leverage. For those who want confirmation, the next earnings and product catalysts, namely the progress on EPYC Venice and Instinct shipments, should serve as critical milestones for the AMD stock price trajectory.