This Artificial Intelligence (AI) Stock Just Landed a Deal Worth Over $100 Billion. Is It a Buy?

Source Domain: www.aol.com

AMD holds the second-largest market share for data center GPUs, trailing only Nvidia.
Recently, AMD secured a substantial $100 billion revenue deal with Open AI and other deals with major companies like Meta, Microsoft, and Oracle.
Although AMD’s market share (4%) isn’t dominant, it’s significant and capable of challenging Nvidia’s near-monopoly (92% market share).
AMD’s GPUs provide comparable performance to Nvidia’s but at substantially lower prices, making them attractive to market share-conscious clientele.
AMD experienced substantial growth in 2025, with revenues increasing 34% from 2024, and its diluted earnings per share (EPS) rising 26%.
For investors, owning both AMD and Nvidia shares could serve as a hedge in the ever-evolving artificial intelligence (AI) hardware market.
It’s noteworthy that despite AMD’s promising trajectory, The Motley Fool Stock Advisor team did not recommend its stock in their latest top 10 picks for investors, emphasizing more on broader market opportunities.

You may have missed