The Next Semiconductor Winner Might Not Be Nvidia

For much of the artificial intelligence (AI) boom, Nvidia (NVDA) has stood at the top, dominating data center GPUs and being the first choice for anything AI. However, the next phase of the AI race may not just be for a single winner. As demand shifts from GPUs to full-stack computing solutions such as CPUs, AI accelerators, and software ecosystems, Advanced Micro Devices (AMD) is emerging as a serious challenger.

AMD entered 2025 with strong momentum and exited the year strengthening its case that it could be the next semiconductor winner. AMD stock has gained 85% in the past year, outperforming the tech-heavy Nasdaq Composite Index ($NASX) gain of 15%. So far this year, AMD stock is down roughly 4%. 

Let’s find out whether AMD stock is a good buy now on the dip. 

Data Center and AI Represent AMD’s Growth Engine

Valued at $348 billion, AMD designs high-performance processors and graphics chips used in data centers, personal computers, gaming consoles, and AI systems. In the fourth quarter, revenue rose 34% year-over-year (YOY) to $10.3 billion, driven by record sales of EPYC server processors, Ryzen CPUs, and Instinct accelerators. Diluted earnings rose 40% YOY to $1.53 per share. The data…