<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Since the AI race took off, Nvidia's growth has far outpaced AMD's.</li><li>Sales of Broadcom's custom AI chips are growing rapidly.</li><li>Amazon may be a wild card in the chip space. </li><li>10 stocks we like better than Advanced Micro Devices ›</li></ul>AMD has been a solid stock over the past few years. Since the start of 2025, it's up by more than 120%. However, I think AMD shareholders should enjoy their moment in the sun now, because there could be some cloudy days ahead.Currently, the stock looks to be trading on the hopes that the company will gain market share from Nvidia (NASDAQ: NVDA), but I think there are some other companies it needs to watch out for, too. I have three stocks that I think have far more upside than AMD and will crush its performance over the long term.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NTYzNy9waG90by1vZi1kYXRhLWNlbnRlci13aXRoLWdwdXMuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NTYzNy9waG90by1vZi1kYXRhLWNlbnRlci13aXRoLWdwdXMuanBnJnc9NzAw"/>Image source: Getty Images. <h2>AMD's growth is nothing compared to these three</h2>First, we need to cover what's going on with AMD. Since the start of the construction boom in data centers for artificial intelligence (AI), it has consistently played second fiddle to Nvidia in graphics processing units (GPUs).Investors hoped that AMD could gain ground, but that hasn't occurred yet. During the fourth quarter, AMD's data center division experienced 39% year-over-year growth. While that's a decent figure, it's nothing compared to others I would rather own.Nvidia is the obvious choice since it's competing in basically the same field. During its fourth quarter, its data center division produced 75% year-over-year growth.Another emerging competitor in the AI chip space is Broadcom (NASDAQ: AVGO). The company isn't designing general-purpose GPUs like Nvidia or AMD. Instead, it's partnering directly with AI hyperscalers to design custom chips that are narrowly suited for the specific workloads they are expected to see during their useful lives.This is a rapidly growing business segment: Broadcom's AI semiconductor division grew its revenue 106% during its latest reported quarter. In 2027, management expects this division alone to generate over $100 billion in revenue. For reference, AMD's data center division brought in $5.4 billion during the fourth quarter. Another less obvious competitor for AMD is Amazon (NASDAQ: AMZN). It's most famous for its e-commerce site and delivery services, but it also has a booming cloud computing division. And its custom-designed AI chips are quickly growing in popularity.The annual run rate for the company's chip business recently exceeded $20 billion, and that segment is growing at a triple-digit percentage pace. It has several new rounds of chips coming, and their planned manufacturing runs are already nearly sold out.As a result of all of this competition, AMD could struggle to grow meaningfully in the data center space, which would be a major problem for its stock.<h2>AMD has a premium valuation</h2>Despite AMD not having growth as good as this trio, its stock trades at a premium.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzLzQyNWEyMTU4Yjc1YzUyZTRmZGM5MWE0ZDU1MjVkNGE0LnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="476" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzLzQyNWEyMTU4Yjc1YzUyZTRmZGM5MWE0ZDU1MjVkNGE0LnBuZyZ3PTcwMA"/>AMD PE Ratio (Forward) data by YCharts; PE = price-to-earnings ratio.It's not often that the worst-performing stock of a peer group (in terms of growth) trades at the highest premium, but that's exactly where AMD is.That doesn't bode well for AMD, especially if these other three can keep up their impressive growth. As a result, I'm more bullish on Nvidia, Broadcom, and Amazon.With the AI data center construction boom expected to last through at least 2030, there is plenty of upside for everyone involved in this trend, including AMD. However, its share price already has a ton of anticipated growth baked into it, making me less bullish about its upside potential.Nvidia, Broadcom, and Amazon are in the right place at the right time to take advantage of the massive spending going on. AMD is a bit late to the party and may not be able to dig itself out of its hole. Its GPUs are often viewed as a second-choice option relative to Nvidia's chips, and with other viable options beyond GPUs emerging from Broadcom and Amazon, their shares are more logical picks than AMD. <h2>Should you buy stock in Advanced Micro Devices right now?</h2> Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!* Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 22, 2026. Keithen Drury has positions in Amazon, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Broadcom, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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The article discusses the competitive landscape in the AI chip market, highlighting that AMD's growth is lagging behind Nvidia, Broadcom, and Amazon. While AMD's data center division saw a 39% growth, Nvidia's grew by 75% and Broadcom's AI semiconductor division surged by 106%. Amazon's custom AI chips are also gaining traction. Despite AMD's strong performance, its stock trades at a premium compared to its peers, raising concerns about its future growth potential. Analysts suggest considering Nvidia, Broadcom, and Amazon as better investment options than AMD.

3 AI Chipmakers With Far More Upside Than AMD