AI Employees Are Coming. 3 Stocks Wall Street Thinks Will Benefit Most

It's been more than three years since the launch of ChatGPT, which started the current artificial intelligence (AI) revolution. It's now clear that this isn't just a fad. AI is changing many aspects of our day-to-day lives. It's also having a significant impact on businesses, and the next wave in the industry could be even more beneficial to corporate bottom lines. AI agents -- or self-directing systems that can plan, organize, and execute tasks while working toward a goal -- seem to be the next big thing.

AI agents could perform many tasks typically assigned to human employees. If they can be trained and run cost-effectively at scale, that could mean lower expenses and higher profits and margins for corporations. That's why the shift to agentic AI is so important. But which companies will benefit the most from this revolution? Here are three worth keeping on your watch list if you want to capitalize on the shift to agentic AI: Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), and Nvidia (NASDAQ: NVDA).

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1. Advanced Micro Devices

Graphics Processing Units (GPUs) have been instrumental in the training and deployment of AI systems, such as chatbots. However, much of the work AI agents do will require CPU (Central Processing Unit)-intensive workloads. AMD believes the shift to agentic AI will bring the CPU-to-GPU ratio from 1:4-8 to 1:1. In other words, there will be soaring demand for CPUs -- perhaps something like the kind we saw for GPUs in the early days of the AI revolution -- and that's great news for AMD, a leading company in this niche.

AMD has already started to capitalize on this. The company's shares have soared by 350% over the past year. AMD's financial results have also been strong, powered by rising demand for CPUs. In the first quarter, AMD's revenue grew by 38% year over year to $10.3 billion.

It could only be the beginning. AMD's EPYC processors are among the market leaders, and the company has gained market share in recent quarters. AMD also boasts a strong competitive advantage thanks to switching costs. AMD's shares might seem expensive. The company is trading at 73x forward earnings, versus the average of 24.4 for information technology stocks.

But given the company's outstanding sales growth, market share gains, and a strong position in the CPU space that could make it one of the biggest winners of the agentic AI boom, AMD might more than justify its valuation over the next five years.

2. Intel

Intel is AMD's biggest competitor in the CPU market. So it stands to reason that it will also benefit from the agentic AI revolution. Intel's shares have also been on a tear, soaring 443% over the past 12 months. However, my view is that Intel is a far less attractive option than AMD. Here are three reasons why. First, Intel's revenue isn't growing nearly as fast. First-quarter sales climbed 7% year over year to $13.6 billion.

Second, and relatedly, Intel has lost market share while hitting manufacturing issues. These problems have plagued the company and harmed its financial results. Third, Intel's shares are trading at 137x forward earnings. At current levels, and given its meager top-line growth and the obstacles it has faced, Intel may be too expensive. While the company is a great stock to consider for the new agentic AI world order, investors should wait for a pullback.

3. Nvidia

Nvidia isn't done cashing in on AI. GPUs will still be needed in the next stage of the industry, and Nvidia has a nearly insurmountable lead in the space, along with a wide moat from switching costs. So, it remains well-positioned to continue profiting from the AI boom. However, Nvidia is also looking to tap into the large CPU demand that the shift to agentic AI will create. The company is projecting $20 billion in stand-alone CPU revenue through the end of the year. That's just a taste. The company sees a large, $200 billion total addressable market in this niche.

Nvidia developed its Vera CPU, which can be sold as a stand-alone product or bundled with its Rubin GPU, precisely to take on this opportunity. And there lies one of the company's advantages that can allow it to compete with AMD and Intel. Nvidia's CPUs may not outperform AMD's in raw performance, but they may still be a strong option (or even the best one) as part of an entire AI-powered system that already features the company's best-in-class GPUs. My view is that Nvidia remains well-positioned to ride the AI tailwind in the long term, and the agentic AI boom will catapult the company higher.

Prosper Junior Bakiny has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.