This article first appeared on GuruFocus.
AMD (NASDAQ:AMD) shares gained more than 1% on Monday despite rival Qualcomm (NASDAQ:QCOM) outlining plans to target the AI data-center market, underscoring investor confidence in AMD’s position in servers and AI accelerators.
Qualcomm said it will begin selling AI chips and integrated server racks next year and is developing new AI CPUs for 2027 and 2028, moves that could broaden competition in the booming data-center space. Market participants noted Qualcomm’s renewed push follows an earlier, less successful effort to enter the server market.
Investors appeared unbothered for now. AMD’s stock rose modestly on the session as traders weighed the competitive landscape against AMD’s entrenched relationships with cloud customers and its growing momentum in AI-optimized chips.
The shares have climbed roughly 110% year-to-date and about 60% over the past 12 months, reflecting strong demand for AI compute and GPUs, analysts say. Still, some strategists cautioned that a new entrant could intensify pricing pressure and slow margin expansion over time.
For now, AMD’s lead in several AI workloads and its established OEM ties seem to be supporting the stock. Traders will watch product road maps, pricing dynamics and customer wins as more players, including Intel (INTC) and Nvidia (NASDAQ:NVDA), further expand their AI offerings.