AMD (NASDAQ: AMD) stock has had a great run in 2026, rising by around 120% so far. But that information doesn’t do investors much good in retrospect. What matters more is where the stock is heading from here, and how fast.
With how rapidly the AI build-out is progressing, many investors are looking to find stocks in this sector that have the potential to double in a year or two. So, could AMD double in just under two and a half years, by the end of 2028?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
AMD’s recent results have given investors hope
Early in the AI arms race, AMD got crushed by its rival in the graphics processor unit (GPU) space, Nvidia (NASDAQ: NVDA). Nvidia already had the majority of the GPU market, and it took a massive early lead in AI data centers. It has yet to give up much of that dominant position. However, AMD has done well in recent quarters, and its growth rate is beginning to accelerate.
In Q2, AMD’s growth rate rose to 50%, its fastest in nearly five years.
Its data center division drove that revenue growth, with revenue rising 107% year over year. However, there is a large asterisk next to that figure. During the second quarter of 2025, President Donald Trump halted all AI chip exports to China. In July 2025, Trump reversed course and lifted that export ban, but it still caused a temporary drop in AMD’s revenue, so its revenue growth this year was artificially boosted. We’ll have to see what Q3’s revenue growth looks like to get a better idea of where the business stands, but AMD has made some deals with major AI companies to supply computing hardware, so not all of its sales gains are coming in relation to that temporary headwind.
Late last year, AMD laid out its plan to deliver compound annual growth of 35% over the next three to five years, based on the expectation of its data center sales growing at an 80% compound annual rate over that time frame. AMD exceeded that pace last quarter, but that’s no guarantee that it can sustain these growth rates.
If it hits those goals, it could be a great investment to own from here. However, a lot of anticipated growth is already baked into the stock price.
AMD’s stock is far from cheap
AMD trades for a lofty 120 times earnings. When you compare it to its larger peer, Nvidia, which only trades for about 30 times earnings, it looks incredibly expensive.
