Advanced Micro Devices (NASDAQ: AMD) became a favorite on Wall Street last year when a boom in artificial intelligence (AI) highlighted the massive potential of its business. Its stock climbed 87% since last March and has shown no signs of slowing, rising 22% since the start of 2024.

The launch of OpenAI's ChatGPT reinvigorated interest in AI and caused countless tech companies to restructure their businesses to prioritize the developing market. Increased demand for AI services also boosted graphics processing unit (GPU) sales because the chips are crucial for training AI models.

AMD was slightly late to the AI party last year while its rival, Nvidia, got a head start in AI chips. However, AMD is investing heavily in the industry and could see big gains from its efforts in the coming years.

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Source Fool.com