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AMD is a distant second to Nvidia in the data center GPU space.
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In recent quarters, the company’s products are starting to gain traction.
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If AMD maintains its momentum, it could become a much more valuable company in a few years.
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10 stocks we like better than Advanced Micro Devices ›
Advanced microdevices (NASDAQ:AMD)Better known simply as AMD, it has been an incredible performer recently, with shares up 114% so far in 2025. But I think this could just be a starting point for this chipmaker with a great history of innovation and execution.
In fact, I’m going to make the bold prediction that AMD will have a larger market cap than Broadcom (NASDAQ:AVGO) by the end of 2030.
First, let’s clarify exactly what I’m predicting. At the time of writing, AMD has a market capitalization of approximately $420 billion, while Broadcom is a proud member of the trillion-dollar club with a valuation of $1.76 trillion. My prediction is that AMD will not only become a trillion-dollar company by the end of 2030, but will also surpass Broadcom in the rankings.
It is true that it is a bold prediction. For a stock to quadruple in five years would be a remarkable rate of return. It would mean gains of around 32% annualized. However, we’ve already seen how companies gaining ground in AI infrastructure can take similar steps (see a five-year chart of NVIDIA (NASDAQ: NVDA) if you want proof). And AMD is making some impressive moves. Here’s why I’ve been buying AMD aggressively in my own portfolio and why I’m so optimistic about the next five years.
Of course, Nvidia is the undisputed leader in AI chips, but AMD’s business has seen a big boost recently. Its GPUs sell for less than comparable Nvidia products, and there are some particularly interesting launches on the calendar for 2026, like the next-generation MI400X GPU.
As an example, AMD recently signed a deal with artificial intelligence giant OpenAI to deploy six gigawatts of AMD data center chips by 2030. And this could be just a starting point for the relationship between the two companies.
Finally, it’s not just its data center AI chips that could boost AMD’s revenue. The company’s PC CPU/GPU business has steadily gained market share over the last decade, its embedded processors have huge potential, especially with autonomous vehicle technology, and those are just a couple of examples.
I want to reiterate that this is a bold prediction. And a big part of the reason I do that is that I think Broadcom may be a little frothy right now and has a good chance of underperforming over the next five years. It is entirely possible that I am wrong and that Broadcom will increase its value by several trillion dollars by 2030.