AMD’s growth outlook contrasts with Intel’s mounting headwinds

AMD appears better positioned than Intel to benefit from AI infrastructure spending following a broad semiconductor sell-off. Its opportunities span inference, agentic AI and server processors, while Intel faces pressure from its exposure to personal computers and an unprofitable manufacturing business.

AMD’s Helios platform combines GPUs, CPUs and networking in an integrated rack designed to lower computing costs. Deployments have begun with customers including OpenAI, Meta Platforms, Microsoft, Anthropic and Oracle. OpenAI and Meta Platforms each have agreements for 6 gigawatts of compute capacity. Demand for server CPUs is also growing as processors help manage AI agents. AMD sees that market reaching $220 billion by 2030 and forecasts revenue growth of 80% in 2027.

Intel’s largest segment, client computing and physical AI, recorded a revenue decline of 5% last quarter. The company expects units to fall 10% in 2027 following a 12% decline this year, with an inventory correction adding near-term pressure. Its foundry business posted a $1.9 billion operating loss in Q3 and continues to struggle to attract external customers. Although Intel remains the server CPU market leader and is seeing strong growth, it has been losing share to AMD and custom processors. Its lack of a turnkey system comparable to AMD’s or Nvidia’s adds another competitive disadvantage.