AMD is highlighted as an attractive AI stock with strong growth prospects driven by data center demand and the AI infrastructure cycle, supported by accelerating revenue momentum and optimism around data-center GPUs.

Profit margins at AMD stand around 10%, with free cash flow tripling in the latest quarter and expected to grow about 66% annually through 2029 to roughly $31 billion, underscoring improving cash generation.

Valuation remains attractive, with the stock trading near 12 times the 2029 consensus free cash flow, implying meaningful upside if growth targets are met.

Disclosure shows that John Ballard holds positions in AMD and Nvidia, and The Motley Fool also holds stakes in AMD, Nvidia, and Oracle, reflecting potential conflicts of interest.

The Motley Fool’s disclosures also indicate positions in AMD, Nvidia, and Oracle, highlighting potential biases to consider.

The author notes personal holdings in AMD and Nvidia and references Fool.com’s disclosure policy, signaling transparency about stakes in the stocks discussed.

AMD’s stock recently trades around €176.94 with a slight dip, while market sentiment among readers shows strong backing with many Buy votes versus few Sells.

The piece ties into broader AI investment narratives from The Motley Fool and Fool.com and directs readers to Fool.com for additional context.

Contextual links point to a broader suite of AI stock coverage, indicating the article is part of a larger AI investment discussion.

The Motley Fool Stock Advisor team did not include AMD among its top 10 stocks this time, contrasting with past standout picks like Netflix and Nvidia.

AMD has surged about 88% over the past six months, aided by accelerating revenue momentum and potential margin expansion from data-center GPUs.

In Q3 2025, AMD reported revenue of $9.24 billion (up 36% year over year), with data-center revenue at $4.3 billion and free cash flow around $1.53 billion, plus substantial cash reserves.