A stock rising over 100% in nine months certainly raises eyebrows. People automatically associate such tickers with words like “overvalued,” “running ahead of its fundamentals,” and even an outright “bull trap.” CNBC financial commentator Josh Brown’s opinion does make sense when considered in isolation. But none of those usual terms apply to Advanced Micro Devices (AMD), a company that continues to rise amid the artificial intelligence (AI) spending spree, including by OpenAI.
It may seem that AMD has risen too much too fast, but calling it “ludicrous” isn’t entirely accurate. People forget that it is still a $420 billion company that is sitting on the cusp of a major technological shift.
Chipmakers recently have benefitted massively from the training of large language models (LLMs). These models required high processing speed and high memory bandwidth, and the training cost was not much of a concern for many hyperscalers.
We are now moving to a point where these models need to be deployed to millions of users. This is where AMD’s expertise comes in. Its MI300X accelerators have started to gain commercial traction, and it is this excitement that is driving the stock higher. People realize efficiency and cost per token are where model deployment will succeed. AMD already does this effectively. Together with its EPYC processors, which already dominate the data center market, AMD is set to continue rising under the leadership of Lisa Su.
AMD is a maker of AI accelerators, CPUs, and GPUs and is based in Santa Clara, California. Its stock is touching new highs today, having already generated 118% returns through 2025. This results in an outperformance by 5.2x compared to the Nasdaq Composite’s ($NASX) year-to-date (YTD) returns of 24.2%. After touching a 2025 low of $76.48 in April, there has been a major spike as AMD stock has risen 244.7% since then. In the process, it has become one of the most trending stocks on Wall Street. A major jump occurred after the first week of October when the company announced its…
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