The chip maker is strongly positioned to gain share in the market for data-center CPUs and to see profit from revenue, a Raymond James analyst says.

Recent CPU sales analysis from Mercury Research, cited in a Monday report from CNN, details the fluctuating market share between Team Red and Team Blue in the PC space. In the pas

AMD's share for both desktop and mobile CPUs has been growing, according to Mercury Research. That said, Arm-based processors have been encroaching on x86 territory.

The chipmaker's CEO put hard growth numbers on the quieter side of its data center segment. They look a lot like AI numbers.

Intel shares rose about 2%, while AMD gained roughly 4% in Tuesday trading. Falling 10-year Treasury yields helped support a broader recovery in US stocks. Intel also got a boost from Pelosi's disclosure while AMD got a fresh bullish call.

Advanced Micro Devices is likely to overtake Intel in the central processing unit market, adding to the stock's appeal compared to other semiconductor names, according to Raymond James. The investment firm upgraded the semiconductor name to strong buy from outperform.

As Intel boosts output of data center and notebook CPUs, AMD manages to outgrow it and keep capturing market share from its arch-rival.

AMD stock may be entering a new phase of its AI story as the chipmaker prepares to turn its Helios rack-scale platform from customer announcements into a major revenue engine. The stock closed Monday at $456.75, down 3.5%, despite bullish commentary around Helios.