Advanced Micro Devices Inc. (NASDAQ:AMD) delivered strong earnings fueled by surging data center demand. As the AI sector advances, AMD’s command of both CPUs and GPUs establishes it as a serious rival to Nvidia Corp. (NASDAQ:NVDA), which has long led the market.
The Strength of an Integrated Approach
Nvidia has excelled in AI training through its powerful GPUs, but the evolving AI landscape favors comprehensive solutions. Ben Bajarin, CEO and Principal Analyst at Creative Strategies, highlighted the benefits during a recent appearance on Schwab Network. “We like the integrated approach that AMD will bring both with CPUs and GPUs,” Bajarin stated. He added that producing both components at scale enables essential “design co-optimization or very specifically tuned inference as well as training systems.”
This rare integrated model positions AMD to compete directly with Nvidia, as data centers require more sophisticated, unified hardware setups.
Agentic AI Sparks CPU Resurgence
The shift toward “Agentic AI” drives this change. These advanced agents direct servers to handle intricate tasks beyond basic model training, revitalizing the CPU sector. Projections show the CPU total addressable market expanding from $25 billion to more than $100 billion by 2030.
AMD CEO Lisa Su affirmed this trend, noting that “data center [is] now the primary driver of our revenue and earnings growth.” Matt Bryson, Managing Director at Wedbush, summed it up in a research note: “The CPU is dead, long live the CPU.”
CPU Strength Buffers GPU Delays
AMD’s upcoming GPUs, such as Helios, target a late-year launch, but robust CPU sales offer stability. As Bryson observed, if major AI projects face delays, AMD can redirect efforts to server CPUs. In a growing compute market with ongoing supply issues, this versatility counters Nvidia’s lead.
2026 Year-to-Date Performance
AMD shares have climbed 96.76% year-to-date, outpacing the Nasdaq 100’s 13.46% gain. The stock rose 18.64% on Wednesday to close at $421.39 and traded 0.42% higher in Thursday premarket. Over the past month, AMD surged 91.38%, and it advanced 77.28% in the last six months.
NVDA shares gained 11.44% year-to-date, trailing the Nasdaq 100 slightly. It ended Wednesday up 5.68% at $207.83 and rose 0.64% in Thursday premarket. NVDA increased 17% over the last month and 10.50% in the past six months.
