AMD shares have risen about 150% in 2026, ranking among the top 10 best performers in the S&P 500, but the author argues part of that gain is not supported by results. The stock trades at nearly 140 times trailing earnings and 34 times next year's earnings, compared with Nvidia at 27 times trailing earnings. In the second quarter, AMD's data center revenue rose 107% to $6.7 billion, but total revenue grew 50% to $11.5 billion because its non-data center units lagged, while Nvidia reported 117% data center growth to $89 billion and total revenue of $96.2 billion, up 106%. The author expects heavy selling pressure as funds take 2026 gains and roll them into 2027 ideas, potentially pushing AMD's valuation lower ahead of its earnings report, and suggests rotating from AMD into Nvidia.
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