Advanced Micro Devices (NASDAQ:AMD) stock is taking a breather today after a strong run over the past few sessions that took the chipmaker above a $1 trillion market cap for the first time.

The latest burst of enthusiasm was partly driven by the popularity of Meta Platforms’ new AI assistant, Muse, which quickly climbed to the top of the U.S. App Store charts. Investors saw the response as a potential boost for the broader AI infrastructure market, particularly the demand for server CPUs needed to power increasingly complex AI workloads, an area in which AMD specializes.

That puts the stock’s gains for the year at roughly 187%, thereby extending what was already a huge rally. However, for those thinking the upside might be capped from here on in, investor Andres Veurink argues that there is still a much bigger opportunity ahead. In his view, the AMD story has moved beyond simply riding momentum, with the company’s long-term AI opportunity now becoming much clearer.

The investor had previously been cautious about AMD because its AI accelerators were not yet competitive enough with Nvidia’s products to give the company a meaningful foothold. That argument has since changed as AMD has landed a series of major AI infrastructure deals and improved the visibility of its pipeline.

OpenAI and Meta have each agreed to deploy up to 6 gigawatts of AMD GPUs, while Anthropic has announced plans for up to 2 GW. Oracle is also deploying 50,000 AMD GPUs. Meta’s agreement is particularly important because it covers multiple generations of AMD hardware, with the first gigawatt scheduled to begin shipping in the second half of 2026.

Veurink sees the growing customer base as evidence that AMD is becoming a meaningful alternative to Nvidia in AI infrastructure. The popularity of products such as Muse could further support that case by driving demand for the computing power required to run AI agents.

The bigger opportunity, however, is the enormous expansion of data center capacity expected over the next decade. Veurink argues that AMD can benefit not only from new capacity but from the eventual replacement of existing GPUs as they age and newer, more powerful chips arrive.

His bullish scenario assumes AMD captures 15% of the data center GPU market by 2035. Under those assumptions, data center revenue could reach roughly $130 billion annually, while total company revenue could approach $300 billion before adding further growth from Client, Gaming and Embedded.

The investor also expects AMD to narrow its pricing gap with Nvidia as its products become more competitive, potentially improving margins alongside the revenue growth.

There are plenty of variables in a forecast stretching to 2035, including AI spending, GPU pricing, replacement cycles and AMD’s eventual market share. But Veurink’s central argument is a straightforward one. AMD now has a much more visible AI pipeline, a rapidly expanding addressable market and a growing list of heavyweight customers, giving the company a substantially larger long-term opportunity than he previously anticipated.

To this end, Veurink rates AMD stock a Strong Buy. (To watch Veurink’s track record, click here)

The analyst consensus has reached the same conclusion. Based on 29 Buys vs. 6 Holds, the stock claims a Strong Buy consensus rating. However, given the shares’ rally, the $644.62 average price target makes room for only modest gains of 5% in the months ahead. (See AMD stock forecast)