Soaring interest in artificial intelligence (AI) has spotlighted chip stocks since the start of last year. These companies develop the hardware that makes the generative technology possible, indicating they have much to gain as the AI market develops.

Market leader Nvidia (NASDAQ: NVDA) has highlighted the significant potential of these companies, delivering stock growth of 674% since January 2023 alongside soaring earnings. The company's business has exploded thanks to the domination of its AI graphics processing units (GPUs). As a result, Advanced Micro Devices' (NASDAQ: AMD) second-largest market share in GPUs and prominent role in chip designs have rallied investors.

The company has caught the eye of Wall Street, with many analysts just waiting for it to follow in Nvidia's footsteps. Bulls have pumped up AMD's stock price by 116% since the start of 2023.

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Source Fool.com