AMD has gained about 160% so far this year, making it the ninth-best performer in the S&P 500, though the stock was near 200% before a recent sell-off. The author argues the stock has run ahead of its growth, with a valuation far above growth expectations. AMD's Q2 revenue rose 50% year over year to $11.5 billion, with its data center division reaching $6.7 billion and growing 107%. However, Nvidia's Q2 data center revenue of $89 billion (up 117%) and total revenue of $96.2 billion (up 106%) suggest its lead is widening, and Nvidia's upcoming Vera Rubin chips are not yet included in those results. The author sees about 30 times forward earnings as a fair valuation, says AMD is above that level while Nvidia is well below it, and suggests taking gains in AMD and moving the money into Nvidia.
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