March 20, 2026
This Chip Company Is Running Circles Around Nvidia
Dear Subscriber,
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| By Michael A. Robinson |
I want to revisit a profitable chat we had last July. And I do mean profitable.
Last summer, I mentioned a storied leader in the nearly $1 trillion chip sector.
I said it packed a lot of upside thanks to AI.
Some of you may have doubted me. After all, the investment play wasn’t Nvidia, the world’s most valuable chip firm — and stock market darling — known for its robust AI chips.
But I was dead on the money with the stock I did recommend.
From that day until now, the stock recorded gains of nearly 19%. That crushed the S&P 500 by nearly 6x.
And it was up over 50% twice in that period.
Just so you don’t think I’m gilding the lily, compare it to Nvidia.
The chip stock I told you about ran circles around it, beating its returns over the period by nearly 8x.
The firm just nailed down a $100 billion AI chip deal.
You know what that means — more profits.
Let me show you how there’s still a lot of upside ahead for investors …
Chips Are Everywhere
These days, chips are everywhere.
They’re in your smartphone, your laptop, your car, your TV — even your refrigerator and washing machine.
They’re the tiny brains inside almost everything we use today.
Modern cars, for example, contain more than 1,000 chips running everything from navigation to safety systems.
And as our devices get smarter, they need more powerful chips to keep up.
That’s where AI comes in.
AI relies on specialized chips to process massive amounts of data quickly.
From voice assistants to self-driving features and personalized recommendations, AI-powered tools don’t work without advanced semiconductors.
Chips quietly power the world, and AI is making them more vital than ever.
It’s no surprise, then, that the market for these chips, according to consulting firm McKinsey, is projected to reach $1 trillion by 2030.
In this market, Nvidia gets most of the spotlight. But plenty of other firms are riding high by focusing on chips.
That includes a company boasting a top-notch CEO, one that’s giving the rest of the sector a real run for its money.
Let Me Tell You About a Woman Named Su
Her name is Lisa Su. She is the head of Advanced Micro Devices (AMD).
Based in Santa Clara, California, AMD designs, develops and sells computer and graphics processors.
In recent years, it’s expanded into emerging markets like data center storage, gaming and high-performance computing.
It’s also focused on the market for AI chips, where it trails only Nvidia as the market leader.
But AMD is familiar in this No. 2 spot.
It took on that role in personal computer and traditional server chips for years when battling Intel.
AMD provides raw computational horsepower with its graphics processing units (GPUs).
Interestingly, it didn’t have a product to rival Nvidia in the AI market until 2023, when it launched a family of GPUs for data center applications.
These moves have helped AMD close the gap between itself and Nvidia.
And don’t forget the guidance and leadership handed down by Su.
AMD CEO Lisa Su unveils the company’s Blackwell competitor: The Instinct MI325X.
Source: CNBC.
Even though AMD went public in 1972 and became a global entity, when Su took the reins in 2014, shares were in the cellar.
But she orchestrated one of the greatest technology turnarounds in history.
In 2022, AMD bought chipmaker Xilinx in a $50 billion deal to build up its data center chops.
That same year, it acquired Pensando Systems, a data center chip and networking startup, for close to $2 billion.
Su’s push into the data center market paid dividends.
Since its founding, Meta had used Intel’s chips to power its cloud data centers.
But an upgraded version of AMD’s line of processors convinced Meta to switch over in 2021.
Today, all four global cloud giants — Amazon, Meta, Microsoft and Alphabet — use AMD processors.
And the pace of deals shows no sign of slowing down.
A $100 Billion Deal
Last month, AMD scored another massive win.
It announced a multiyear agreement with Meta that could be worth more than $100 billion over the next several years.
Meta plans to buy AMD’s AI chips, including custom GPU and CPU technology, to power its massive AI infrastructure.
This means that AMD’s gear will help train and run big AI models that Meta uses across its apps and services.
What’s interesting about this deal is how it shifts the competitive landscape.
For years, companies like Intel hoped to be the big players in AI data center chips.
But in this instance, AMD beat out challengers, including Intel, to become Meta’s go-to provider for this critical infrastructure.
Meta’s choice shows confidence in AMD’s technology and gives it a huge new customer at a time when demand for AI computing power is exploding.
One thing to note: Instead of all cash up front, AMD is giving Meta performance-based warrants that could let the company own up to 10% of AMD’s stock.
That ties both companies’ futures together in a big way. And it helps AMD secure long-term revenue that could reshape how it competes in the AI hardware market.
More Upside Ahead
I mentioned AMD’s 19% gains from last July until now. After such great returns, you might wonder if there’s more upside ahead.
You bet. AMD is forecast to close 2026 with earnings growth of 66%.
At that rate, earnings would double in only about 15 months. And when earnings grow, stock prices do too.
Add it up, and you can see why AMD still has plenty of room to run, making it a great stock you can count on for the long haul.
Best,
Michael A. Robinson
P.S. As you can see, partnerships like the one between AMD and Meta are powerful in this developing AI space.
I recently found that Nvidia has several of its own partnerships. But not all are listed as “official.” See what I found here.
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