Key Points

• AMD’s data center division has lagged behind Nvidia’s since the AI arms race began.

• Management believes the company can grow its data center division at a 60% CAGR over the next five years.

• It may become a trillion-dollar company by 2030 as a result.

• 10 stocks we like better than Advanced Micro Devices ›

Advanced Micro Devices (NASDAQ: AMD) has been a successful investment since the artificial intelligence (AI) arms race began in 2023, with its stock rising from about $60 to around $250 today. That’s about a 213% rise, which is an impressive return in three years. But several companies have delivered far better returns over that time, including AMD’s chief rival, Nvidia.

However, the…