Outperforming AMD Stock Still Looks Cheap. Here's Why.

Advanced Micro Devices (AMD) has been on an impressive run over the past 52 weeks, with shares of the chip stock up more than 126% over this time frame. With the global semiconductor market expected to reach $736 billion by 2027, according to Statista, AMD finds itself well-positioned, with a diversified foothold spanning CPUs, GPUs, and enterprise data centers. Bolstered by new product launches in 2023, including the industry-leading Instinct MI300 data center GPUs, AMD captured 25% market share in the data center space last quarter, putting pressure on mega-cap rivals like Nvidia (NVDA) and Intel (INTC).

But with enthusiasm over artificial intelligence (AI)-fueled growth pushing related stocks into the stratosphere, does AMD still present an attractive risk-reward profile for investors after doubling in the past year? Here's a closer look at the prospects for AMD right now, and what Wall Street analysts are expecting next.