Advanced Micro Devices Inc. (AMD) remains smack in the middle of the AI trade these days. The chipmaker is expanding its technology portfolio through an $8.2 billion acquisition while investors fixate on rising demand for CPUs and GPUs coming from agentic AI workloads.

The stock gained nearly 13% last week and almost 30% in September, briefly pushing the company above a $1 trillion market value before it slipped back below that level Monday.

Cramer Sees Agentic AI Driving CPU Demand

CNBC's Jim Cramer said Monday that growing adoption of AI agents could create another major demand driver for AMD.

Cramer described AMD's rise under CEO Lisa Su as an "incredible run" and said he sees no sign that it is going to stop anytime soon.

He said investor attention has shifted from AI model training toward inference and agentic applications, which require more central processing power to coordinate tasks and run AI workloads.

Meta Platforms Inc. (META) reinforced that theme with the launch of Muse, its personal AI agent platform.

Cramer views AMD as a leader in CPUs and expects broader agent adoption to increase demand for the company's processors.

AMD Builds A Larger AI GPU Business

AMD has also expanded its presence in graphics processors used for AI, putting it in more direct competition with NVIDIA Corp. (NVDA).

The company has secured major GPU commitments from AI spenders including Meta and OpenAI.

Cramer still views NVIDIA as the leading AI-chip supplier but believes demand is large enough to support multiple companies. He also said AMD's products are more competitive than some investors recognize.

Cramer highlighted AMD's transformation under Lisa Su, who took over in October 2014 when the company was valued at slightly more than $2.5 billion. Shares of AMD have since gained more than 18,000% as the company expanded its CPU position and built a larger AI business.

AMD Adds World Labs To AI Strategy

AMD is also moving to broaden its capabilities through an $8.2 billion all-stock acquisition of World Labs.

The deal will add World Labs' spatial-intelligence models, robot-learning technology and research expertise to AMD's hardware, software and systems strategy.

World Labs co-founder and CEO Fei-Fei Li will join AMD as executive vice president and chief scientist.

Su said the acquisition will help AMD better understand how AI models are evolving and apply that knowledge to developing next-generation computing platforms.

AMD held $5.09 billion in cash and cash equivalents and $8.03 billion in short-term investments as of June 27, 2026.

Top ETF Exposure

• iShares Semiconductor ETF (SOXX): 8.74% Weight
• First Trust Nasdaq Semiconductor ETF (FTXL): 6.79% Weight
• Pacer Data and Digital Revolution ETF (TRFK): 6.52% Weight

Significance: Because AMD carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

AMD Stock Price Activity: Advanced Micro Devices shares were trading higher by 0.57% at $611.36 during premarket trading on Tuesday, according to market data.