2 AI Stocks Poised for Outperformance Over the Next 5 Years

The Motley Fool identifies Microsoft (MSFT) and Advanced Micro Devices (AMD) as two AI stocks well-positioned for outperformance over the next five years, citing surging data center spending expected to reach nearly $3 trillion by 2028. Microsoft's AI recurring revenue surged 123% year over year to $37 billion with a $627 billion backlog, and the stock's 30% pullback from highs offers a forward P/E of just 20 against projected 16% annualized earnings growth.

Why it matters: AMD's server CPU revenue grew over 50% in Q1 with accelerating share gains versus Intel, data center revenue up 57% year over year, and analysts expect roughly 59% annual earnings growth despite a 74x forward P/E.