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

<p>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.</p>
<p>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 (NASDAQ: AMD), and here's why.</p>
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<h2>Why I'm keeping AMD in my portfolio</h2>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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 <a href="https://www.fool.com/investing/2026/03/10/amds-multi-billion-dollar-ai-deal-why-gpu-revenue/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=bb386954-7e8e-44ac-8cb3-87388e86c911">drive steady gains</a>.</p>
<p>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.</p>
<p>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.</p>
<p>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&amp;P 500's average 29 P/E ratio, implying that its accelerated growth could take the stock much higher over time.</p>