1 Artificial Intelligence (AI) Stock I'd Never Sell

By Will Healy – Mar 15, 2026 at 12:02PM ESTKey PointsAMD's upcoming MI450 release could redefine the market for AI accelerators.An increasingly favorable valuation could attract more investors.Investors will buy and sell high-quality stocks periodically, but calling a stock a "never sell" places it in a different category. That says that a shareholder will continue to hold regardless of the company's challenges or industry downturns. Admittedly, it may also be dangerous to label a stock as such, as seemingly rock-solid investment theses can sometimes get broken. Still, it is unlikely I'm letting go of my shares of Advanced Micro Devices (AMD 2.33%), and here's why. Image source: AMD. Why I'm keeping AMD in my portfolio Ultimately, I am staying with AMD because of CEO Lisa Su's long-term success with the company. Su took a nearly bankrupt chip company in the early 2010s and turned it around by focusing on CPUs and GPUs. This proved fortuitous as the rise of AI made these chips more essential. Moreover, her focus on that part of the chip industry allowed AMD to focus on quality, eventually surpassing Intel in CPUs. It also made competitive strides versus Nvidia in some parts of the GPU market and became a leader in gaming and later, embedded chips. To be fair, AMD appeared to lose out amid Nvidia's development of the AI accelerator. However, the company has closed much of the gap in this area, and its upcoming MI450 AI accelerator is on track to surpass Nvidia's future Vera Rubin accelerator in many respects. This growing technical prowess likely helped lead to its recent agreement with Meta Platforms to power the Facebook parent's next-generation AI infrastructure. This and other deals should help AMD drive steady gains. Also, amid that success, AMD told investors that it expects to grow revenue at a compound annual growth rate (CAGR) of 35% over the next three years. That included a 60% CAGR for its data center segment, which designs its AI accelerators. That would place that part of the business on par with Nvidia's 65% annual revenue growth in fiscal 2026. It is also worth noting that Nvidia derives over 90% of revenue from its data center segment. In comparison, AMD derives just under half of its revenue from the data center segment now, though its expected growth rate implies that it will soon earn most of its revenue from that business. Furthermore, AMD's valuation has become increasingly favorable. Although its 77 P/E ratio may appear high, rapid profit growth has it on track for a forward P/E ratio of 31. That compares well to the S&P 500's average 29 P/E ratio, implying that its accelerated growth could take the stock much higher over time. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(-2.33%) $-4.60Current Price$193.14Key Data PointsMarket Cap$315BDay's Range$192.27 - $199.6652wk Range$76.48 - $267.08Volume1.2MAvg Vol36MGross Margin45.99% Holding AMD Thanks to its growing importance in AI and the chip industry in general, I'm never selling, or at least I'm highly unlikely to sell my AMD stock. Yes, AMD lags behind Nvidia in the AI chip industry. Nonetheless, its technical strides have made it a major player in that fast-growing industry. With that, its stock continues to make gains even as its valuation is set to fall. Amid those conditions, AMD is fast becoming Nvidia's most formidable competitor, and that will likely continue to translate into higher returns in the AI stock.Read NextMar 15, 2026 •By James HiresThis Artificial Intelligence (AI) Stock Just Landed a Deal Worth Over $100 Billion. Is It a Buy?Mar 12, 2026 •By Harsh ChauhanBetter Artificial Intelligence (AI) Stock: Broadcom vs. AMDMar 10, 2026 •By Jose NajarroAMD CEO Lisa Su Believes Its Deal With Meta Platforms Will Be a Triple-Digit Billion Dollar DealMar 10, 2026 •By Motley Fool YouTubeAMD's Multi-Billion-Dollar AI Deal: Why GPU Revenue Could Drive Steady GainsMar 10, 2026 •By Keith Speights3 Artificial Intelligence Stocks You Can Buy and Hold for the Next DecadeMar 7, 2026 •By Will HealyIs AMD Stock Going to $300?About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedAdvanced Micro DevicesNASDAQ: AMD$193.14(-2.33%)-$4.60*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.