Prediction: This AI Stock Could Become a Household Name by 2030

The rapid expansion of artificial intelligence (AI) technology has brought several companies into the limelight in the past few years. For instance, Nvidia, which is in the business of designing semiconductors, became an instantly recognizable name thanks to the role it plays in the proliferation of AI.

But AI adoption is still in its early phases. There are likely to be more companies that will become famous thanks to this technology, and buying them before they become household names could be rewarding for investors in the long run.

Let's take a closer look at a company that isn't as famous as Nvidia yet but has the potential to follow in the chip giant's footsteps to become a household name in the next five years.

This AI company has the potential to be a household name by 2030

Advanced Micro Devices (NASDAQ: AMD) has been playing second fiddle to Nvidia so far in the market for AI chips. However, investors would do well to note that the former could become a bigger AI name thanks to its diversified businesses.

Nvidia's AI chips are primarily deployed in data centers for running AI workloads in the cloud. The company also sells consumer-oriented graphics processing units (GPUs) that are used in personal computers (PCs) and workstations for tackling graphics-intensive workloads. AMD also caters to both these markets. It sells central processing units (CPUs) and GPUs that power PCs, and is also trying to cut its teeth in the AI data center market.

But then, the scope of its business goes beyond data centers and PCs. AMD also sells semi-custom processors that are deployed in two popular gaming consoles, along with embedded processors that go into various applications such as automotive, healthcare, robotics, and industrial markets. AMD, therefore, is likely to have a bigger reach as its chips are capable of powering a wider range of devices in the future.

For instance, reports suggest that AMD has already been selected to make the semi-custom processors for the next generation of gaming consoles from Sony and Microsoft. These consoles, which are expected to hit the market within the next three years, are expected to pack AI-powered features. AMD's console processor is likely to enhance the resolution of the games that will run in the next generation of gaming consoles to deliver a more immersive gameplay experience.

Meanwhile, AMD is already reaching more customers with the help of its AI-centric PC CPUs. The company offers CPUs capable of running AI workloads locally on PCs, which is one of the reasons why it grabs a bigger share of this market. Specifically, AMD's client CPU market share stood at 23.9% in the second quarter of 2025 as compared to 21.1% in the same period last year.

Its revenue share increased by a much more handsome 9.8 percentage points from the year-ago period to 27.8%. This is an indicator of AMD's robust pricing power and the fact that customers are willing to pay more for its AI-focused Ryzen processors. As such, don't be surprised to see AMD reaching more customers with the help of its AI-capable CPUs.

In all, AMD's solid presence in consoles, which are expected to get an AI-powered boost when the next generation arrives, along with its rising share of the AI PC market, could help it become a household AI stock by the end of the decade.

Throw in the fact that AMD can win more business in the data center GPU market thanks to its aggressive product roadmap and partnerships with the likes of Oracle, which is rapidly deploying more data centers across the globe, and there is a good chance that it could come out of Nvidia's shadow and become a popular AI stock in the long run.

In fact, AMD just received a major boost in the AI data center market thanks to OpenAI. The ChatGPT maker will buy AMD's Instinct data center GPUs to build 6 gigawatts of compute capacity starting next year. AMD stock rocketed higher following this announcement, and there is a good chance that it can sustain this momentum in the long run.

AMD's valuation makes it a solid buy right now

AMD has a price/earnings-to-growth ratio (PEG ratio) of just 0.52 based on its projected annual earnings growth rate for the next five years, as per Yahoo! Finance. The PEG ratio is a forward-looking valuation metric that takes a company's future earnings growth into account, and a reading of less than 1 means that the company is undervalued with respect to the growth that it is anticipated to deliver.

AMD's PEG ratio clearly tells us that it is undervalued based on the potential growth that it could clock through 2030. So, buying AMD right now could be a smart thing to do for the long run, as its presence in consumer-facing markets that are embracing AI (such as gaming consoles and PCs), along with a potential improvement in its data center market share, is likely to bump up its growth rate in the future.

All this could contribute toward making AMD more popular and send this semiconductor stock soaring in the long run.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.