Prediction: This AI Hardware Stock Could Become One of the Next $1 Trillion Companies

• Advanced Micro Devices' products are cheaper than Nvidia's.

• Nvidia's proviso problems could unfastened the doorway for AMD.

• AMD expects immense information halfway maturation implicit the adjacent 5 years.

• 10 stocks we similar amended than Advanced Micro Devices ›

The trillion-dollar banal nine is simply a reasonably exclusive group. There person lone been 10 U.S.-listed stocks that person breached this valuation level, and determination are a fewer much wrong striking distance.

However, 1 banal that's a spot acold distant is Advanced Micro Devices (NASDAQ: AMD). AMD has a marketplace headdress of $330 billion, truthful it whitethorn not beryllium connected investors' radar for crossing into the $1 trillion valuation range. However, AMD's hardware is starting to go much fashionable successful the artificial quality (AI) world, and it whitethorn get determination faster than galore think.

How rapidly tin AMD scope $1 trillion? Well, if its projections travel true, it could beryllium determination successful arsenic small arsenic 4 years.

Nvidia (NASDAQ: NVDA) is the undisputed king of graphics processing units (GPUs). GPUs are well-suited for AI workloads, arsenic they tin process aggregate calculations successful parallel. At the commencement of the AI roar successful 2023, Nvidia's GPUs, the controlling software, and different hardware that supports them were acold superior to AMD's. As a result, Nvidia's products became the go-to option, portion AMD's lone became an alternative.

However, those trends are shifting. AMD has made monolithic improvements successful its power software, ROCm. It noted a 10 times summation successful downloads twelvemonth implicit twelvemonth successful November 2025. That's a large woody due to the fact that it shows that developers are exploring their hardware. This could beryllium a awesome that AMD's products are starting to go a viable alternative, and whitethorn beryllium acceptable to bargain immoderate marketplace stock distant from Nvidia.

There is lone truthful overmuch wealth disposable to physique information centers. Computing hardware tin beryllium astir fractional of the outgo to physique them, and portion Nvidia's products are the best, they aren't cheap.

There aren't readily disposable prices connected flagship GPUs for information centers, and these numbers are estimates from reports. Nvidia's Blackwell B200 GPU tin outgo betwixt $30,000 and $50,000 per chip, depending connected options. Its AMD rival, the MI350, costs $25,000. This allows AI hyperscalers to get much bang for the subordinate for unreality GPUs, but it remains to beryllium seen if this cheaper terms tag is worthy it from a show side.

However, AI hyperscalers whitethorn not person a prime connected whether they privation to usage AMD's chips anymore. During Nvidia's Q3 results, the institution announced that it was "sold out" of unreality GPUs. While this whitethorn dependable similar a bully occupation to have, the bigger contented is that customers whitethorn crook to AMD's products arsenic an alternate if they cannot get the computing powerfulness that they request from Nvidia. If AMD's products tin present akin results astatine a little terms tag, this could make a script wherever much clients take AMD's hardware successful the future.