Beyond Intel: Why AMD's AI Chip Momentum Makes It the Clear Choice for Growth Investors

Intel (NASDAQ: INTC) has staged a remarkable rally over the past six months, its shares soaring 137% on the back of strategic investments and a much-publicized turnaround bid. Yet, the chipmaker's recent quarterly results served as a stark reminder of the challenges it still faces in translating optimism into consistent financial performance.

The company's Q4 2025 revenue dipped 4% year-over-year. While its Data Center and AI (DCAI) segment posted a 9% gain, management conceded that supply shortages capped potential growth. More concerning for investors was the guidance: Intel forecast break-even earnings per share for the coming quarter, well below year-ago figures, prompting a sharp sell-off.

This stumble highlights a pivotal divergence in the semiconductor sector. As Intel navigates a complex recovery, Advanced Micro Devices (NASDAQ: AMD) is executing with precision in the very markets driving the industry's future—artificial intelligence and high-performance computing.

AMD is projected to deliver a 32% revenue increase for 2025, with earnings growth expected to accelerate into 2026. The driver is a dual-pronged technological assault. In data center GPUs, its upcoming MI400 series promises near-double the compute power of its predecessor, positioning it to compete more aggressively with Nvidia. Looking ahead, the MI500 series promises a generational leap in AI performance.

On the CPU front, AMD's Epyc server processors are gaining significant traction, with the company's server CPU market share climbing to 27.8% in Q3 2025—a 3.5-point annual increase. The company has set an ambitious long-term goal of capturing over half of a server CPU market that is itself expanding rapidly due to AI demand, potentially reaching $60 billion by 2030.

"The narrative has decisively shifted," says Michael Torres, a portfolio manager at Horizon Capital. "Intel's story is about potential and patience. AMD's story is about current execution and a visible, multi-year roadmap for growth in the most lucrative segments. For growth-oriented investors, the choice is becoming clearer."

Valuation further tilts the scale. Intel trades at a steep 88 times earnings amid slowing growth, while AMD's multiple is supported by accelerating profits. Analysts have been raising earnings estimates for AMD while trimming expectations for Intel over the next three years.

Sarah Chen, a veteran semiconductor analyst, offers a note of caution. "Market leadership in tech is never static. Intel has immense resources and government backing. Writing them off would be a mistake. This is a marathon, not a sprint, and supply chain dynamics can change quickly."

However, not all observers are measured. "Intel's guidance was a disaster," asserts tech investor and podcast host Marcus Reed. "They're begging for more supply while AMD is shipping winning products. The idea that Intel is the 'safe' bet is collapsing. Investors clinging to the old guard are missing the real engine of innovation, which is squarely at AMD right now."

For long-term chip investors, the calculus increasingly favors the company that is not just promising AI success, but already demonstrating it through design wins, market share gains, and a robust technological pipeline. While Intel works to rebuild, AMD is busy capturing the future.

Disclosure: The author has no position in any stocks mentioned. This analysis is for informational purposes only.