Intel Comeback or AMD Takeover? Which Chip Stock Will Win the AI CPU War?

As AI workloads evolve, CPUs are becoming increasingly important in data centers alongside GPUs. Intel, despite its market leadership with 60% CPU share, has struggled with manufacturing delays and failed foundry expansion plans. AMD has executed better by partnering with TSMC and investing in AI chip development, achieving 38% revenue growth in Q1 2026. While both companies will participate in the AI CPU market, AMD is positioned to outperform Intel, though its stock valuation at 40x forward earnings may warrant waiting for a better entry point.