Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAmit SinghSat, July 4, 2026 at 6:00 PM GMT+2 3 min readA close-up of an AMD office by gehapromo via Adobe StockAdvanced Micro Devices (AMD) has been one of the top performers in the S&P 500 ($SPX) during the first half of 2026. Specifically, AMD stock has surged 142% year-to-date (YTD), outperforming Nvidia (NVDA) stock's gain of just over 4% over the same period.The rally has been driven by AMD's solid financial performance over the past several quarters, led by its growing share in the artificial intelligence (AI) infrastructure space. Demand for its Instinct GPU accelerators remains solid, driven by a diversified customer base and ongoing AI infrastructure spending.More News from BarchartBillionaire Mark Cuban Says He Got Rich And Drunkenly Bought A $125K American Airlines Lifetime Pass —'I Called Them Up And Just Slurred My Words'FedEx Is Abandoning Its Supply Chain Business. FDX Stock Investors Need the Logistics Giant to Protect Its Core Network.AeroVironment Posted Solid Earnings and the Stock Reacted Sharply Higher. If You Can Tolerate Risk, Buy Here.Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!AMD is also likely to benefit from strong demand for its high-performance EPYC processors as AI workloads evolve from model training to inference and emerging agentic AI applications. These workloads require greater compute capacity, positioning AMD to capitalize on growth across both GPUs and CPUs.While these tailwinds indicate strong growth ahead, AMD stock is not cheap. Following its sharp run-up, AMD now trades at 87.9 times forward earnings, a substantial premium to Nvidia's forward price-to-earnings (P/E) ratio of about 22.7 times.With this backdrop, here's what investors can expect next for AMD stock.www.barchart.comAMD's valuation appears high, but the company's solid execution over the past several quarters and long-term growth prospects suggest that the higher multiple is warranted. The company continues to gain share in AI accelerators while its CPU business has significant room to expand. On top of that, AMD projects robust growth over the next three to five years, which could drive earnings high enough to support its current valuation.AMD's latest quarterly results were solid, with revenue climbing 38% year-over-year (YOY) to $10.3 billion. At the same time, AMD's earnings increased by more than 40% YOY. Strong profitability also translated into a sharp improvement in cash generation, with free cash flow more than tripling from the prior year.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info