AMD’s 118% YTD Rally Is ‘Ludicrous’ According to This Analyst. Should You Still Buy AMD Stock?

Core Viewpoint - Advanced Micro Devices (AMD) is experiencing significant stock growth, attributed to its role in the artificial intelligence (AI) sector, particularly in the training and deployment of large language models (LLMs) [1][2]. Company Overview - AMD is a $420 billion company specializing in AI accelerators, CPUs, and GPUs, currently achieving substantial stock performance with a 118% return projected through 2025 [2][5]. - The stock has outperformed the Nasdaq Composite by 5.2 times, with year-to-date returns of 24.2% [5]. Market Dynamics - The chipmaking industry is benefiting from the demand for high processing speed and memory bandwidth required for training LLMs, with hyperscalers willing to invest heavily in this area [3]. - AMD's MI300X accelerators are gaining commercial traction, which is driving excitement and stock price increases [4]. Product and Technology - AMD's expertise in deploying models to millions of users is crucial, as efficiency and cost per token are key to successful model deployment [4]. - The company's EPYC processors dominate the data center market, positioning AMD for continued growth under CEO Lisa Su's leadership [4]. Recent Developments - AMD's stock saw a significant spike after announcing a multi-year deal with OpenAI for AI chips, marking a major milestone in its growth trajectory [5].