Did Investors Overlook CPU Stocks During the AI Boom?
When artificial intelligence first captured investors’ attention, no one was talking about CPUs. The focus was almost entirely on one thing: GPUs.
That focus made sense. Graphics Processing Units are exceptionally good at handling the massive parallel computations needed to train AI models, and companies like NVIDIA became some of the biggest winners of the AI boom.
But as the industry matures, investors are beginning to realize that AI infrastructure is much larger than GPUs alone.
Data centers require a combination of computing power, memory, networking, electricity, cooling, and processing systems working together. While GPUs have received most of the headlines, CPUs remain a critical part of that ecosystem.
That realization is helping fuel renewed interest in CPU-related stocks.
What Is the Difference Between a CPU and a GPU?
For investors new to the space, it helps to understand the basic roles each component plays.
A CPU, or Central Processing Unit, serves as the general-purpose brain of a computer system. It handles operating systems, applications, and many of the tasks that keep servers and data centers running.
A GPU, or Graphics Processing Unit, is designed to process large amounts of data simultaneously. That makes it especially effective for AI training and certain types of machine learning workloads.
The two are not competing technologies. In reality, they work together.
The AI boom initially highlighted the importance of GPUs, but growing data center demand is reminding investors that CPUs remain an essential part of the overall infrastructure.
What Actually Powers AI?
| Component | Primary Role | Example Companies |
| GPUs | AI training and heavy computation | NVIDIA, AMD |
| CPUs | System management and general computing | AMD, Intel |
| Memory | Store and move data efficiently | Micron |
| Networking | Connect servers and clusters | Broadcom |
| Power & Cooling | Keep data centers operating | Eaton, Vertiv |
One of the reasons we continue to like the broader AI infrastructure theme is because every component shown above benefits from continued buildout.
The chatbot race may evolve. Different AI models may gain or lose market share. But if AI continues expanding, the infrastructure supporting it still needs to be built.
Why Investors Are Paying Attention to CPUs Again
The AI story is evolving.
The first phase focused on AI models and software. The second phase focused on the chips needed to train those models. Today, investors are beginning to look at the entire ecosystem and ask what other components may benefit from continued growth.
That is where CPUs enter the conversation.
As more AI data centers are built and more computing infrastructure comes online, demand for processing power increases across the system. Investors are increasingly viewing CPUs as another way to participate in AI growth without relying entirely on one specific AI platform or application.
In many ways, this is similar to the thesis we discussed in our AI data center article. Rather than betting exclusively on one winner, investors can gain exposure to the broader buildout itself.
Is It Too Late?
Many of the stocks tied to AI infrastructure have already moved significantly.
That naturally raises the question: have investors missed the opportunity?
Our view is no.
Just as we argued that the AI data center buildout is still in its early-to-middle stages, we believe AI infrastructure spending still has room to grow. Hyper-scalers continue investing billions into AI, new data centers continue to be announced, and demand for computing resources remains strong.
That does not mean every stock will double.
It does mean there may still be opportunities in areas that have received less attention than GPUs.
If the CPU thesis continues gaining traction, some of these names could still see meaningful upside despite their recent gains.
Why We Like AMD Best
Of the CPU-related names, AMD currently stands out to us.
Part of that comes from its position within the industry. Unlike some companies that rely heavily on a single narrative, AMD has multiple ways to benefit from continued technology spending.
The company participates in both CPU and GPU markets, giving it exposure to several parts of the AI ecosystem. It is also an established business with a long operating history rather than a speculative startup trying to prove itself.
Most importantly, the investment case for AMD does not rely entirely on the CPU thesis being correct.
If AI spending continues broadly, AMD is positioned to benefit. If CPUs become a larger part of the conversation than many investors currently expect, AMD may benefit even more.
That combination makes it one of the more attractive names in the group.
A Similar Opportunity in Memory Stocks
Another area worth watching is memory.
AI systems consume enormous amounts of data, and that data must be stored, moved, and accessed efficiently. As a result, memory companies have become another important piece of the AI infrastructure story.
Stocks like Micron Technology have already seen significant appreciation as investors recognize the role memory plays in AI.
The opportunity may not be as undiscovered as it once was, but the underlying demand remains strong.
Much like CPUs, memory represents another example of investors looking beyond the obvious AI winners and toward the supporting technologies that make the entire ecosystem possible.
The Bigger Picture
One of the lessons from the AI boom is that markets rarely stop at the first winner.
At first, investors focused on AI software. Then attention shifted to GPUs. More recently, the conversation expanded to data centers, power infrastructure, cooling systems, and networking.
CPUs and memory may represent the next stage of that evolution.
That does not make them low-risk investments. In fact, they may be among the higher-risk opportunities within the AI space. But for investors looking to add a higher-upside position alongside more established holdings, they may be worth considering.
The key is understanding that the AI story is becoming much bigger than any single company, chip, or chatbot.
Position for the Next Phase of AI
The biggest opportunities often emerge after the market begins looking beyond the obvious winners. At Michael Leslie Investments, we help investors evaluate evolving trends and identify opportunities across the broader market.
Contact Michael Leslie Investments today to discuss how AI infrastructure investments may fit into your long-term strategy.
