Advanced Micro Devices (NASDAQ:AMD) has been bouncing back over the past few weeks. Advanced Micro Devices stock arguably has a way to go before re-hitting its past high water mark. It trades for around $170 per share, but traded north of $225 at the height of “AI mania” earlier this year.

That said, there’s a catalyst in motion that could enable the stock to not only climb back to its prior high, but hit higher highs in the years ahead. We’re talking, of course, about the AI-PC chip growth trend. While playing out slowly, it’s not too early to gain exposure by adding this stock to your portfolio.

Advanced Micro Devices Stock and its Recent Rally

As we detailed in a post-earnings write-up on AMD, investors reacted negatively to the company’s April 30 quarterly earnings release. The results themselves came in ahead of sell-side forecasts. However, there was big disappointment with AMD’s updates to guidance.

Namely, guidance when it came to estimated 2024 sales of its MI300 Instinct series of AI accelerator chips.

Yet while investors bid down Advanced Micro Devices stock ahead of earnings, and in the immediate aftermath of the earnings release, it’s possible that the earnings release of another top AI chip contender has helped to drive AMD’s recent rebound.

Clearly, strong results and guidance from Advanced Micro Devices’ largest competitor are helping to bolster confidence in AMD’s own future growth potential. Then again, it may not be just this factor driving a rebound for this stuck-in-a-slump mega cap tech stock.

Another possible factor at play is the anticipated upcoming boom in demand for the chips needed to power generative AI-enabled PCs and other consumer hardware devices. Again, the rise of AI-PCs is going to take time to play out. Even so, once it does play out, it could have a dramatic positive impact on the operating performance of Advanced Micro Devices.

AI-PC Chip Sales are Poised to be a Needle-Mover

Last month’s disappointment notwithstanding, Instinct MI300 sales stand to have a major impact on the performance of Advanced Micro Devices down the road. AMD’s latest guidance calls for this new product series to generate $4 billion in revenue this year. As demand for data center AI chips continues to climb, further growth is very possible in 2025 and beyond.

However, starting in 2025, it may be AI-PC chip products that really move the needle for Advanced Micro Devices stock. AMD is an early mover in this space. Earlier this year, it was reported that the company had a 90% share of this still-small yet fast-growing AI CPU market.

In time, expect competitors to gain some ground. However, any market share loss will be far outweighed by the extent of AI-PC proliferation. According to Morgan Stanley, next year alone, AI-PCs as a percentage of the overall PC market will climb eightfold, from 2% to 16%.

This likely means billions in additional incremental revenue for AMD, giving credence to sell-side forecasts calling for the company’s sales to increase by as much as 59.9% in 2025. The impact of AI-PC chip sales on earnings could be even more spectacular.

Bottom Line: It’s Not too Late to Get in Early

If you think the prospect of nearly 60% revenue growth next year is impressive, consider that AMD’s earnings could more than double compared to analyst forecasts for 2024, to $8 per share.

Better yet, it’s not as if AI-PC chip sales growth will screech to a halt starting in 2026. The aforementioned Morgan Stanley forecast calls for AI-PC market share to climb another fourfold between 2025 and 2028, to 64% of the overall PC market.

With this, AMD is likely to sustain a rich valuation for quite some time. Each big jump in earnings will undoubtedly drive another big leap higher for shares. While the next big takeoff for shares may not be immediate, it’s not too late to get in early. At the very least, keep Advanced Micro Devices stock on your radar.

Advanced Micro Devices stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.