AMD Outlook: Will the Stock Rebound as Valuation Remains Compelling?

Shares of Advanced Micro Devices (AMD) have delivered a strong performance over the past year, significantly outperforming competitor Nvidia (NVDA). Indeed, AMD stock has climbed 95% over the last 12 months, compared to a gain of around 50% for NVDA stock. Despite this impressive rally, however, AMD has cooled in 2026 and now trades about 26% below its 52-week high.

While the stock has cooled off a bit, AMD's underlying business fundamentals remain solid. Strong demand for the company’s server central processing units (CPUs) and Instinct graphics processing units (GPUs) continues to support growth. AMD has steadily strengthened its position in the high-performance computing market, with its data center segment growing rapidly and positioning the firm to deliver solid growth. Rising capital investment by enterprise and cloud customers in advanced computing infrastructure is expected to further sustain demand for AMD's data center solutions.