AMD Is Up 149% Year to Date. Is the AI Chip Rally Getting Dangerously Crowded, or Is There Still Room to Run?
Explosive AI demand, accelerating financial results, and growing market share suggest AMD's next leg higher could still be ahead.
AMD Is Up 149% Year to Date. Is the AI Chip Rally Getting Dangerously Crowded, or Is There Still Room to Run?
Overview
Let me get the obvious thing out of the way: Yes, Advanced Micro Devices (NASDAQ: AMD) is up around 149% year to date. Yes, the stock price crossed $550 this week. Yes, a lot of people who didn't own it at the start of the year are now looking at the chart and wondering if they're buying someone else's gains.
I get all that. But I think walking away here is a mistake. I also think going all in here is a big mistake. In the first quarter of 2026, Advanced Micro Devices posted $10.3 billion in revenue -- up 38% year over year -- with data center revenue of $5.8 billion, up 57%. Non-GAAP (adjusted) earnings per share came in at $1.37, operating income hit $2.5 billion, and free cash flow reached a record $2.6 billion for a single quarter -- more than 3 times the $727 million it generated in Q1 2025.
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Originally published at www.fool.com.
