Better Artificial Intelligence (AI) Inference Stock: AMD vs. Intel

2026-06-15 14:05:00 ET

Artificial intelligence (AI) computing power has mostly been allocated to training large language models (LLMs) so far, but a shift is now happening in this space. Inference, which is the process of putting trained AI models to work in real-world situations by exposing them to new data and queries, is expected to account for the majority of AI computing power.

According to McKinsey, inference will account for more than half of AI computing capacity in data centers by 2030, surpassing the training phase. This explains why demand for central processing units (CPUs) is now increasing at a robust pace, as they are considered ideal for handling AI inference workloads due to lower costs.

In fact, Advanced Micro Devices (NASDAQ: AMD) doubled its server CPU total addressable market (TAM) estimate last month to $120 billion by 2030, noting that demand for these chips is increasing due to agentic AI and inference applications. AMD, however, isn't the only one benefiting from the improving CPU demand.

Continue reading