📰 The AI Stock Showdown: AMD vs Amazon
As a savvy investor, you probably already know long-term plays are all about the marathon ahead — but sometimes, the sprint is just as juicy. In 2025, two heavyweights in the AI and tech world, Advanced Micro Devices (AMD) and Amazon (AMZN), are not just jogging — they’re sprinting toward growth with catalysts that could send their stocks soaring.
So, why should you care? Because these companies are not only innovating but also showing signs of momentum that's starting to make Wall Street sit up and listen.
💡 1. Advanced Micro Devices: The AI Chip Powerhouse
AMD has been quietly climbing the ranks, and its stock price tells the story — a 61% jump since hitting a 52-week low of $76.48 back in April. That’s some serious bounce-back energy!
Why the hype? AMD is crushing it in the AI chip space, especially with its MI300 series GPUs designed for data centers. Fun fact: Their first data center GPU, the MI300, pulled in a cool $5 billion last year alone. Now, AMD's gearing up to launch the MI350 GPU, promising to blow previous performance and throughput out of the water by 35 times over its predecessor MI300x.
🔍 Key moves:
- Brokering deals like the recent partnership with Saudi Arabia's AI venture HUMAIN, aiming to build cost-effective AI workloads leveraging AMD's chips.
- Big names like Oracle lining up to deploy AMD's latest AI accelerator clusters.
- Accelerating revenue growth streak — 36% YoY increase in the latest quarter, riding higher than the 24% growth from the previous quarter.
💬 CEO Lisa Su isn’t sweating the chip export controls to China either; she believes AMD’s long-term addressable market is a whopping $500 billion. Now, that’s confidence!
The market agrees — analysts estimate AMD’s earnings per share to grow 20% in 2025, then jump 44% in 2026. Given these numbers, AMD’s forward P/E ratio of 31 doesn’t look so steep, right? The stock could definitely have more runway.
🚚 2. Amazon: Robotics and AI Delivering Growth
Amazon is no stranger to innovation, but they’re taking their AI and robotics game to a whole new level. After a rough patch, their stock has bounced back 42% from a 52-week low of $151.76 — and it’s not just luck.
The Q1 earnings report revealed a jaw-dropping 62% year-over-year increase in earnings. What’s fueling that? Their growing use of robotics in fulfillment centers.
Here’s the juicy part: since acquiring Kiva Systems in 2012, Amazon’s been all-in on robots. Their fulfillment centers are home to over 750,000 industrial robots, handling everything from moving packages to sorting — and with humans now testing humanoid robots for the last mile (package delivery right to your doorstep), efficiency — and margins — could skyrocket.
Why does that matter? Because last-mile delivery costs usually gobble up over half of total shipping expenses. If robots can handle that better than humans — cha-ching on margins!
💬 Analysts are upbeat about Amazon’s 2025 and 2026 earnings prospects. Despite a current valuation at 35 times earnings, the projection of record-breaking profits and margin improvements backed by AI and robotics innovation makes that look like a bargain.
🪄 What This Means for You
If you’re hunting for AI-driven growth plays that might still be underappreciated, these two are knocking on the door:
- AMD: Powered by cutting-edge AI chip technology and a growing client base hungry for data center GPUs.
- Amazon: Leveraging massive robotics fleets to reshape logistics and boost profitability.
Investing isn't just about the next breakout stock; it's about understanding the engines behind growth. And in 2025, AMD and Amazon look like those engines are revving hard.
🚀 Pro tip:
Keep an eye on AMD’s Advancing AI event — fresh announcements there could spark new enthusiasm. And for Amazon, watch how their robotics innovations translate into financials over the coming quarters.
📈 Stocks Mentioned
- AMD (Advanced Micro Devices)
- AMZN (Amazon)
- Also spotlighted: NVDA (Nvidia), ORCL (Oracle) — key AI ecosystem players.
📚 Related Reads
Much love and smart investing! See you next Thursday with more market magic.
Disclaimer: John Ballard holds positions in AMD and Nvidia. The Motley Fool also has positions in AMD, Amazon, and Nvidia.
Image source: Getty Images
Image source: Amazon