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A boom in artificial intelligence (AI) kicked off last year, leading to a surge in tech stocks. As a result, the Nasdaq-100 Technology Sector is up about 55% year over year and has shown no signs of slowing.

According to data from Grand View Research, the AI market hit close to $200 billion last year and is projected to expand at a compound annual growth rate of 37% through 2030. That trajectory will see the segment reach nearly $2 trillion by the end of the decade. So, it's not too late to invest in AI and potentially see major gains despite the meteoric rise last year.

An attractive investment option is Advanced Micro Devices (NASDAQ: AMD), a chipmaker investing heavily in AI. The company has already made plenty of millionaires, with its stock up 87% since last March. However, a new line of AI graphics processing units (GPUs) and improvements in the PC industry could see its stock soar in the coming years.

So, here is one AI stock that has created millionaires and will continue to make more.

AMD is profiting from the tailwinds of two expanding markets

AMD spent years focusing primarily on central processing units (CPUs) and is responsible for about 36% of the market. However, increased interest in AI has caused the company to pivot to GPUs, the chips necessary for training AI models.

AMD rival Nvidia got a head start in AI GPUs last year, snapping up a significant part of the market. However, AMD is moving to challenge the leader with its own line of chips.

Last December, AMD unveiled its new MI300X AI GPU. This chip is designed to compete directly with Nvidia's offerings and has already caught the attention of some of tech's most prominent players, signing on Microsoft and Meta Platforms as clients.

However, AMD isn't banking solely on stealing market share in GPUs. The chipmaker wants to lead its own space within AI by doubling down on AI-powered PCs. According to research firm IDC, PC shipments are projected to see a major boost this year, with AI integration serving as a key catalyst. And a Canalys report predicts that 60% of all PCs shipped in 2027 will be AI-enabled.

In addition to AI growth, AMD is profiting from an improving PC market. Spikes in inflation prompted steep declines in PC sales, with shipments dipping 16% in 2022 and continuing to fall for most of 2023. However, recent reports indicate the market is finally showing signs of recovery.

Data from Gartner shows PC shipments popped 0.3% in the fourth quarter of 2023, marking the first increase in more than a year. Market improvements are reflected in AMD's sales, with its PC-centered client segment reporting a 62% rise in revenue in Q4 2023.

AMD is on a promising growth trajectory as the company benefits from the development of AI and the PC market.

Earnings-per-share estimates show AMD's stock could nearly double

AMD's earnings have yet to reflect its heavy investment in AI because it's still transitioning from being primarily a maker of CPUs to GPUs. However, recent quarterly earnings indicate it's moving in the right direction.

In AMD's fourth quarter of 2023, revenue rose 10% year over year to $6 billion, beating analysts' expectations by about $60 million. The company's AI-focused data center segment posted 38% revenue growth alongside solid growth in its client segment.

The company has an exciting outlook, and EPS estimates reflect this.

AMD's earnings could reach just over $7 per share by fiscal 2026. Multiplying that figure by the company's forward price-to-earnings ratio of 50 yields a share price of $360, projecting stock growth of 97% over the next two fiscal years.

Alongside solid prospects in AI and the benefits of a recovering PC market, AMD's stock is a screaming buy right now.

Should you invest $1,000 in Advanced Micro Devices right now?

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Gartner and 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.