AMD's Gamer Boom Signals Trouble For Intel's Long-Held Lead

Advanced Micro Devices, Inc. (NASDAQ:AMD) is gaining momentum in tandem with improving market share trends and renewed confidence in its artificial intelligence strategy.

AMD Gains Ground On Intel Among PC Gamers

AMD stock has extended its upward move since Friday, supported by fresh data showing the chipmaker closing the gap with Intel Corp. (NASDAQ:INTC) in the PC gaming market.

According to the latest Steam hardware survey, the share of Windows users running AMD CPUs increased by 4.6 percentage points in December, leaving AMD less than 10 percentage points behind Intel.

Also Read: AMD Sets Ambitious AI, Earnings Goals Through 2030

Over the past year, AMD's share of Steam's Windows users climbed from 38.7% to 47.2%, underscoring a steady shift in gamer preferences, the Verge reported Saturday.

AI Momentum Fuels Investor Optimism

AMD stock has gained 73% over the last 12 months, driven by investor optimism surrounding its OpenAI deal, MI400 chips, and the Helios rack system, which is expected to be released in 2026.

Last December, AMD got a boost from reports indicating Alibaba Group Holding Limited (NYSE:BABA) was considering a large purchase of AMD's latest AI chips.

Reportedly, Alibaba is weighing an order of 40,000 to 50,000 MI308 accelerators, signaling strong near-term demand for AMD's AI hardware.

Analysts See Attractive Entry Point

TD Cowen views AMD as one of the top AI stocks to own, citing an attractive entry point after the recent pullback.

On December 2, the firm named AMD a "Best Ideas 2026" pick as it prepares to unveil its Helios AI platform.

Analysts said the stock's weakness creates an opportunity ahead of major product launches.

TD Cowen cited AMD's steady progress in AI chips, enhanced software, and growing customer interest as key reasons for its optimism.

AMD Price Action: Advanced Micro Devices shares were up 2.99% at $230.15 during premarket trading on Monday, according to Benzinga Pro data.

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