{"id":539213,"date":"2026-07-22T20:59:15","date_gmt":"2026-07-22T20:59:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/539213\/"},"modified":"2026-07-22T20:59:15","modified_gmt":"2026-07-22T20:59:15","slug":"beyond-nvidia-why-the-next-phase-of-ai-could-crown-a-new-market-leader","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/539213\/","title":{"rendered":"Beyond Nvidia: Why the Next Phase of AI Could Crown a New Market Leader"},"content":{"rendered":"\n

Nvidia (NASDAQ: NVDA) was the undisputed chip design champion during the first phase of the AI megatrend, when workloads centered on the training of frontier large language models (LLMs). Its powerful graphics processing units (GPUs) were ideal for this task, and it benefited even more from the wide moat provided by its CUDA software platform<\/a>, which was where most foundational AI code was written. The chipmaker sold vast numbers of its GPUs, and continues to. <\/p>\n

However, in the next phase of the AI trend, the center of gravity is shifting toward inference and agentic AI workloads, and with that, there could be a shift in the marketplace. The big winner of this phase looks like it may be Advanced Micro Devices (NASDAQ: AMD). While it is highly unlikely to unseat Nvidia as the leader in processors for AI model training or surpass its market cap, AMD’s stock looks poised to outperform its larger rival over the next few years. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n

Poised for explosive growth <\/p>\n

There are two powerful tailwinds forming that bode well for AMD. The first is the shift toward AI inference<\/a> — applying AI to real-world problems — which is eventually expected to become a much bigger market than LLM\u00a0 training. As an ongoing expense, there is much more emphasis on cost-per-inference, and these processes tend to revolve much more around access to memory than raw compute power. AMD is addressing this in two ways. <\/p>\n

First, its chiplet design allows its GPUs to be packaged with more memory than Nvidia’s, making them ideal for inference workloads. Meanwhile, it recently acquired memory optimization company MEXT, which will allow it to incorporate its software into complete systems. MEXT’s technology uses AI to offload infrequently used data to flash memory and restore it to DRAM just before it is needed, essentially expanding memory capacity virtually without meaningfully impacting performance, and helping reduce costs. AMD already has a few large GPU deals in place, which should help drive tremendous revenue growth. <\/p>\n

\"AMD<\/a> Image source: The Motley Fool. <\/p>\n

In addition to its opportunity in inference, AMD will enjoy another potent growth driver thanks to the coming rise of agentic AI. While prior types of AI workloads had to be handled primarily by powerful parallel processors — i.e., GPUs and application-specific integrated circuits — AI agents require more central processing units (CPUs) to handle sequential processes, and as such, the proportion of CPUs to GPUs in data centers optimized for agentic AI will grow meaningfully. Whereas in data centers built for inference, the average ratio recently was around 1 CPU for every 8 GPUs, for agentic AI, Intel predicts that ratio will shift to 1 CPU for 1 GPU. <\/p>\n

AMD has long been a leader in high-performance data center CPUs, so that transition opens up a big market opportunity for it. The company has already brought out high-core CPUs designed specifically to handle AI agents, which should position it to continue to gain market share from Intel, which has been its primary rival in that niche. <\/p>\n

With AMD riding two of the most powerful trends in AI infrastructure, expect the stock to continue to outperform in the years ahead, and to be a top AI stock to own. <\/p>\n

Should you buy stock in Advanced Micro Devices right now? <\/p>\n

Before you buy stock in\u00a0Advanced Micro Devices, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Advanced Micro Devices\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $370,332!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,272,280!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/a> <\/p>\n

*Stock Advisor returns as of July 22, 2026. <\/p>\n

Geoffrey Seiler<\/a> has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

Beyond Nvidia: Why the Next Phase of AI Could Crown a New Market Leader<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia (NASDAQ: NVDA) was the undisputed chip design champion during the first phase of the AI megatrend, when…\n","protected":false},"author":2,"featured_media":539214,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[51528,16709,365,15326,363,364,20637,111,139,1042,69,145],"class_list":["post-539213","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-advanced-micro-devices","tag-agentic-ai","tag-ai","tag-ai-stock","tag-artificial-intelligence","tag-artificialintelligence","tag-inference","tag-new-zealand","tag-newzealand","tag-nvidia","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/539213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=539213"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/539213\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/539214"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=539213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=539213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=539213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}