AMD stock is up about 140% so far in 2026, while rival Nvidia is up about 13%. AMD is catching up in AI after lagging early, with deals with hyperscalers such as OpenAI lifting second-quarter data center revenue 107% year over year to $6.7 billion. Analysts expect growth of 41% next quarter, 57% in the fourth quarter and 75% in 2027. The author argues this growth is already priced in: AMD trades at 68 times forward earnings, versus 27 times trailing earnings for Nvidia. Given this valuation, the author says the stock is more likely to underperform or lose value, and suggests investors may consider rotating into Nvidia and taking profits.
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