AMD and Synopsys Lead the Nasdaq-100 With Explosive July Gains

The Nasdaq-100 index closed out July with a solid 3.3% gain, pushing its year-to-date performance to 8.3%. While the broader tech-heavy index continues to climb steadily, two standout companies dramatically outpaced the market — Advanced Micro Devices (NASDAQ: AMD) and Synopsys (NASDAQ: SNPS).

These two semiconductor-related giants, both with deep roots in the artificial intelligence (AI) ecosystem, posted gains exceeding 20% in just one month. Their performance reflects growing investor confidence in the long-term demand for AI infrastructure, semiconductor innovation, and advanced design technologies.

Let’s take a closer look at what powered this breakout performance — and whether the rally still has room to run.

Nasdaq-100 Climbs on Strong Tech Momentum

The Nasdaq-100, home to some of the largest and most innovative technology firms in the world, has had a strong 2025 so far. July’s 3.3% gain represents the third straight month of positive returns, with major gains fueled by AI enthusiasm, declining inflation fears, and resilient earnings from key players.

But among the 100 largest non-financial companies listed on the Nasdaq, two stocks stood tall.

Advanced Micro Devices (AMD) — Up 29.5% in July

A Leading AI Challenger to Nvidia Gains Steam

Advanced Micro Devices topped the Nasdaq-100 in July, soaring 29.5% for the month and bringing the stock within striking distance of its all-time high.

Why Did AMD Stock Jump?

AMD’s rally was largely driven by positive momentum stemming from its “Advancing AI” event held in June, where the company unveiled a series of cutting-edge AI initiatives aimed at challenging rival Nvidia’s dominance in AI chips.

These included:

• The launch of the MI300X AI accelerator
• Expanded AI software ecosystem support
• Deepened collaborations with cloud providers
• A push into LLM (large language model) infrastructure

Investors saw this as a clear signal that AMD is ready to compete more aggressively in the AI race, a segment that is projected to grow into a $400 billion+ industry in the next decade.

Financial Outlook

According to Yahoo! Finance analyst consensus, AMD is projected to generate $32.1 billion in revenue this year — representing 24.5% year-over-year growth.

That’s a sharp acceleration from last year, and underscores the demand tailwinds created by generative AI, high-performance computing (HPC), and cloud infrastructure.

With strong execution, a robust product roadmap, and increasing market share in both CPUs and GPUs, AMD could be entering its next phase of growth.

Synopsys (SNPS) — Up 21.4% in July

Quiet AI Enabler Hits the Spotlight

While not as widely discussed in retail investing circles as AMD or Nvidia, Synopsys is one of the most essential companies behind the scenes of the AI revolution.

In July, its stock surged 21.4%, making it the second-best performer in the Nasdaq-100 for the month.

What Does Synopsys Do?

Synopsys is a semiconductor design software leader. Its EDA (electronic design automation) tools are used by chipmakers such as AMD, Nvidia, Intel, and others to design the next generation of AI, data center, and consumer chips.

In other words, Synopsys is the company that enables the creation of modern AI chips.

Financial Outlook

According to analysts, Synopsys is expected to deliver $7.4 billion in revenue in 2025, up 21% year over year. The company has consistently posted double-digit revenue growth over the last five years, thanks to:

• Explosive demand for chip design tools
• Its growing IP licensing business
• Expanding customer base across AI and automotive sectors

Investor confidence in Synopsys has risen sharply in 2025 due to its strategic positioning at the foundation of the semiconductor supply chain.

Why AI Is Driving Explosive Growth for Tech Stocks

The standout performances from AMD and Synopsys highlight a broader macro trend: the world is entering a golden age of AI investment.

From AI data centers to autonomous vehicles, from edge computing to smart sensors, virtually every major tech advancement relies on chips that are faster, more efficient, and capable of handling complex AI workloads.

Both AMD and Synopsys are playing key roles in making this happen.

Global AI Trends Powering the Market:

• AI chip demand expected to grow 35% annually through 2030
• Cloud providers investing hundreds of billions in infrastructure
• Edge AI in automotive and mobile segments gaining traction
• Governments and enterprises adopting AI at scale

In this environment, companies like AMD (hardware) and Synopsys (design tools) are mission-critical players, which justifies growing investor optimism.

Should You Buy AMD or Synopsys Now?

AMD — Pros and Cons

Pros:

• Rapid growth in AI GPU market
• Expanding product lineup
• Strong cloud and data center exposure
• Close to record highs, signaling strong momentum

Cons:

• Fierce competition from Nvidia and Intel
• High valuation post-rally
• Execution risks in delivering next-gen AI chips

Synopsys — Pros and Cons

Pros:

• High-margin, recurring-revenue business model
• Essential player in AI chip development
• Strong financial performance and guidance
• Growing IP licensing revenues

Cons:

• Less well-known among retail investors
• Vulnerable to semiconductor cycle slowdowns
• Premium valuation compared to peers

Analyst Note:

Despite their strong momentum, neither AMD nor Synopsys made the latest “Top 10 Stocks to Buy Now” list from The Motley Fool’s Stock Advisor service, which may give cautious investors reason to evaluate other opportunities as well.

Key Risks to Watch

Even with massive gains in July, it’s important to monitor macro and micro risks that could impact both companies:

Final Thoughts: Growth Now, Caution Later?

July was clearly a breakout month for both Advanced Micro Devices and Synopsys, and their respective roles in the AI economy are becoming increasingly critical.

These companies represent two different layers of the same AI infrastructure stack — AMD delivers the physical processors that train AI, while Synopsys builds the tools that make those processors possible.

Their July stock rallies — 29.5% and 21.4%, respectively — may not be sustainable every month, but they’re certainly indicative of investor belief in long-term potential.

Whether now is the right time to invest depends on your risk profile, investment timeline, and conviction in AI as a multi-decade trend.