Which AI Supercycle Stock Will Make You Richer Over the Next 10 Years?
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Which AI Supercycle Stock Will Make You Richer Over the Next 10 Years?
09 mins
The artificial intelligence (AI) supercycle has produced no shortage of stock market winners. But two worth calling out are Advanced Micro Devices(NASDAQ: AMD) and Intel(NASDAQ: INTC).
AMD is firing on all cylinders, with accelerating revenue growth and multi-year customer commitments worth tens of billions of dollars. Meanwhile, Intel is finally showing signs of life after years of stumbles — and its stock has been on a tear as Wall Street bets that CEO Lip-Bu Tan’s turnaround plan is taking hold. As of this writing, Intel shares are up more than 220% year to date. With that said, AMD has had an amazing run, too. Shares have already more than doubled this year.
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But which of these hot AI chip stocks is a better buy?
For an investor trying to choose between these two for the next 10 years, I believe the answer comes down to durability.
Image source: Getty Images.
A wider AI lane for AMD
AMD’s first-quarter report, released earlier this month, is the kind of update long-term investors love to see. Quarterly revenue rose 38% year over year to $10.3 billion — an acceleration from 34% growth in the fourth quarter of 2025. And the company’s guidance for the second quarter calls for roughly 46% growth at the midpoint, implying growth will likely keep accelerating.
And the data center segment, in particular, is seeing explosive growth. First-quarter data center revenue rose 57% year over year to $5.8 billion, driven by EPYC server processors and a continued ramp of Instinct GPUs. Notably, this segment alone now accounts for more than half of AMD’s total revenue.
And the company’s pipeline looks exceptional, too. AMD has multi-year, multi-gigawatt deployment commitments from both OpenAI and Meta Platforms.
Capturing the moment, AMD CEO Lisa Su said during the company’s first-quarter earnings call that the quarter marked “a clear inflection in our growth trajectory and a structural shift in our business.”
Finally, cash generation reinforces the story. AMD posted record first-quarter free cash flow of $2.6 billion and ended the period with $12.3 billion in cash and short-term investments. That gives management the flexibility to keep investing aggressively without leaning too heavily on debt or shareholder dilution.
Intel: a turnaround with too many moving parts
Intel’s first-quarter results, reported in late April, made it clear that a turnaround was in full swing. Revenue for the quarter rose 7% year over year to $13.6 billion. And its data center and AI group grew 22%. The foundry business climbed 16%.
But the underlying picture is messier. Intel posted a $3.7 billion net loss for the quarter as Intel Foundry burned through about $2.4 billion of operating losses. Even on a non-GAAP (adjusted) basis, earnings per share of $0.29 trailed AMD’s $1.37 for the same period.
Then there is the strategy.
Intel’s long-term thesis hinges on two things it has yet to demonstrate at scale: achieving economic yields with its 18A manufacturing process and signing external customers on to its upcoming 14A node.
Helping the bull case for Intel, Nvidia made a $5 billion investment in Intel last year, and Intel recently joined Elon Musk’s Terafab project to manufacture chips for Tesla, SpaceX, and xAI.
But my issue is that Intel stock’s astronomical rise this year arguably bakes in much more good news than the company has actually delivered.
Which one to own for the long haul?
For an investor trying to compound capital through the AI build-out over the next 10 years, the comparison arguably favors AMD. AMD already has the products, the customer commitments, and the cash flow to fund its own growth, while Intel still has to prove its foundry vision can work at the scale and yields its valuation now assumes.
Of course, AMD stock has risks, too. The stock trades at a forward price-to-earnings ratio of about 65, leaving little room for execution missteps. Additionally, a demand pause among hyperscalers, or a supply chain disruption, could pressure shares.
But AMD’s robust growth story is already visible today. Intel’s, by contrast, still requires investors to take a leap of faith on a turnaround that could take years to fully materialize — and is already priced as if much of it has happened. For patient investors, therefore, AMD looks like the more measured way to participate in the AI supercycle.
Should you buy stock in Advanced Micro Devices right now?
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Daniel Sparks has clients with positions in Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Meta Platforms, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
