Can you convert $200 to $400 in a year? You can — you simply have to invest in a tech stock that is riding the artificial intelligence (AI) wave but remains unnoticed by the market. Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ:NVDA) stocks are hitting new highs. The key growth drivers are:
- Increasing investment in AI data centres.
- Launch of next-generation AI chips.
- Securing a license from the US government to export AI chips to China, one of their largest markets.
The repeat of the 2018 tech stock momentum
Doesn’t this remind you of the 2018 U.S.-China trade war? After bottoming out in December 2018, Trump eased export restrictions, and the two stocks rallied more than 100% in 2019.
This time, AI accelerated their growth. AMD and Nvidia stocks bottomed out in April 2025 and have surged 129% and 90%, respectively, in less than four months. And this is just the beginning.
The second half is seasonally strong for the two stocks as the Black Friday sale sees the year’s highest single-day sales of personal computers and gaming devices. This year, the two have a dual advantage of the five-year PC refreshment cycle and AI data centre chip demand.
Given the tariff uncertainty, Chinese customers might use this approval window to populate all their orders for delivery. The approval to sell AI data centre chips to China could see pending orders getting executed in the next five to six months. AMD has around US$800 million in inventory of MI308 AI data centre chips, which it can sell to China once it secures an export license. Profits could rise faster than revenue as high-margin data centre chips get a bigger share of the revenue.
There is a possibility that AMD stock surges another 50—80% in the second half, making a new high from the previous $207.39 on March 8, 2024.
The ultimate AI stock to buy with $200 right now
AMD is the ultimate AI stock to buy right now. The company started its AI journey late with the launch of its Instinct MI350 Series graphics processing units (GPUs) and accelerators in June 2025.
It even completed the acquisition of ZT Systems, which provides AI and general-purpose compute infrastructure for large hyperscalers, in March for US$4.9 billion. Since AMD is a chip designer and not a manufacturer, it is selling the manufacturing operations of ZT Systems to Sanmina for $3 billion in cash. This acquisition will add to 2025 earnings.
AMD has partnered with Saudi Arabia’s HUMAIN to deploy a 500 megawatt AI superstructure for a $10 billion investment in the next five years. The sheer size of just one deal shows the growth potential of AI data centres for AMD, which recorded 2024 revenue of $25.8 billion. Nvidia ran the AI rally in 2023 and 2024, growing its revenue almost fivefold from around $27 billion in 2022 to $130.5 billion in 2024.
If AMD can achieve even 10% of Nvidia’s AI revenue, the former’s revenue could jump 38% in 2025.
How to buy this AI stock
AMD stock is currently trading under US$180, 14% below its previous high. Now is the right time to buy this stock under $200 before the company releases its second-quarter earnings on August 5.
Your Tax-Free Savings Account (TFSA) allows you to buy US stocks and grow your money tax-free and withdraw capital gains tax-free. Even if you can buy a single stock of AMD, now is the time. It could increase your money by more than 100% in the next 12 months, as its AI rally has just begun. The valuations might make the stock look expensive, but ratios cannot capture the exponential growth AI brings.
This AI stock can give your portfolio a boost, but you should also invest in some Canadian stocks across sectors to manage risk. It is because Trump’s tariff uncertainty could slow AMD’s rally.
