AMD vs. Intel: Which Is the Better Artificial Intelligence Chip Stock to Own Until the End of 2027?
Harsh Chauhan, The Motley Fool
Tue, July 28, 2026 at 7:39 PM GMT+5:30
6 min read
- AMD
-7.93% - INTC
-5.88% - NVDA
+0.07%
Both Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) have made investors significantly richer recently, driven by the growing demand for their artificial intelligence (AI) data center chips
AMD stock has clocked impressive gains of 197% over the past year, while Intel’s gains have been even more impressive at 343%. The good news for investors is that both of these semiconductor specialists can sustain their impressive momentum, as they have been making solid progress in product development to gain a larger share of the AI chip market
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
But if you have to choose from one of these semiconductor stocks for your portfolio right now, which one should you be buying? Let’s find out
Intel’s AI business has stepped on the gas
When Intel released its second-quarter 2026 earnings report on July 23, it reported an impressive year-over-year increase of 59% in the data center and artificial intelligence (DCAI) segment revenue to $6.3 billion. This is a solid improvement over the 22% year-over-year growth reported by the DCAI segment in Q1
The growing demand for server central processing units (CPUs) for agentic AI applications is becoming a major catalyst for Intel. The company noted on its latest earnings call that its “core server CPU franchise is growing faster than ever.” Intel points out that the year-over-year growth in the server CPU business was the strongest on record in Q2. Its Xeon 6 server CPUs are witnessing such strong demand that they are now among the fastest-ramping products in the company’s history
Intel adds that it has landed more customers for its server CPUs through long-term strategic agreements and is ramping up capacity to meet the overwhelming demand. Importantly, Intel isn’t just relying on the growth of server CPUs to fuel its growth. It is also designing custom AI processors, which are in high demand for their efficiency in inference-focused workloads
Intel says that its custom AI processor business saw revenue jump almost 3x from the year-ago period. So, Intel is benefiting from the growing adoption of its AI chips on multiple fronts. This is why it anticipates an impressive 65% year-over-year increase in earnings per share in the current quarter to $0.38
However, the healthy demand for server CPUs and custom processors, along with Intel’s ability to reduce costs by improving production yields ahead of expectations, could eventually result in a bigger bottom-line jump. Not surprisingly, analysts are forecasting a terrific 264% year-over-year increase in Intel’s earnings per share in 2026
