Advanced Micro Devices (AMD +0.79%), better known simply as AMD, has been an incredible performer recently, with shares up by 114% so far in 2025. But I think this could be just a starting point for this chipmaker with an excellent history of innovation and execution.
In fact, I'm going to make the bold prediction that AMD will have a higher market cap than Broadcom (AVGO +4.08%) by the end of 2030.
First, let's clarify exactly what I'm predicting. As of this writing, AMD has a market cap of roughly $420 billion, while Broadcom is a proud member of the trillion-dollar club with a $1.76 trillion valuation. My prediction is that not only will AMD become a trillion-dollar company by the end of 2030, but that it will overtake Broadcom on the leaderboard.
Image source: Advanced Micro Devices.
Admittedly, this is a bold prediction. For a stock to more than quadruple within five years would be a remarkable rate of return. It would mean gains of about 32% annualized. However, we've already seen how companies that gain serious traction in AI infrastructure can have similar moves (look at a five-year chart of Nvidia (NVDA +1.80%) if you want proof). And AMD is making some impressive moves. Here's why I've been aggressively buying AMD in my own portfolio and why I'm so optimistic about the next five years.
Reasons why AMD could 4x (or more) by 2030
Of course, Nvidia is the clear leader in AI chips, but AMD's business has seen serious traction recently. Its GPUs sell for less than comparable Nvidia products, and there are some particularly exciting launches on the calendar for 2026, such as the next-generation MI400X GPU.
As one example, AMD recently signed a deal with massive AI company OpenAI to deploy six gigawatts of AMD data center chips by 2030. And this could be just a starting point for the relationship between the two companies.
Finally, it isn't just its AI chips for data centers that could drive AMD's revenue higher. The company's CPU/GPU business for PCs has steadily gained market share over the past decade, its embedded processors have tremendous potential, especially with autonomous vehicle technology, and those are just a couple of examples.
A bold prediction, but a great investment opportunity
I want to reiterate that this is a bold prediction. And a big part of why I'm making it is that I think Broadcom may be a bit frothy right now and has a good chance of underperforming over the next five years. It's entirely possible that I'm wrong and Broadcom soars by several trillion dollars in value by 2030.
However, in the roughly 11 years since Lisa Su has been CEO of AMD, it has been a big mistake to bet against the company. In fact, AMD shares have increased at an annual rate of more than 48% under her tenure -- which would be more than enough to surpass Broadcom by 2030 if it keeps up.
