AM stereo refers to a way of broadcasting radio signals that allows for a better listening experience. You know how when you listen to the radio, it only sounds like the music is coming from one direction, like right in front of you? With AM stereo, it's like the music is all around you and you can hear different instruments and sounds coming from different directions, like you're actually there.
It works by sending two radio signals at once, one for the left ear and one for the right ear. Your brain combines the two signals to make it sound like there's all this cool stuff happening all around you. So, when you listen to AM stereo, you get to hear music in a way that's more like a concert or a live performance.
AM stereo is a bit like when you have two different colored crayons and you swipe them together on a piece of paper. The place where the colors mix is where you get the cool new color. AM stereo works by mixing two signals together to create a more awesome sound.