Investing in Advanced Micro Devices (NASDAQ:AMD) stock often comes with a caveat. The chipmaker has ridden the AI-driven surge in demand and delivered strong revenue growth over the past year, yet it continues to trail its far larger rival, Nvidia. Still, being second in the race is hardly holding AMD back these days. Over the past nine months, the shares have jumped more than 200% from their early-April lows.
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Moreover, some of the major industry players have come to believe that the company has what it takes to serve as an alternative to Nvidia, with both OpenAI and Oracle having inked major deals with AMD over the past few months.
Earlier this month, AMD laid down another gauntlet at CES 2026, when it provided a glimpse of its new “Helios” rack-scale platform for advanced AI workloads.
Undeterred by the past few months of horizontal trading (largely due to fears of an AI bubble), top investor James Brumley believes this year is shaping up to be another winner for AMD.
“Advanced Micro Devices is making a more concerted effort to penetrate the AI market more than it has in the past, with better purpose-built solutions,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Brumley points out that the strategy is already working, as its data center revenue grew by 22% on a year-over-year basis in Q3 2025. Moreover, the investor notes that this growth doesn’t take into account the newer Instinct GPUs.
In fact, some customers are reportedly holding out for this advanced piece of tech. Brumley is expecting that when the Instinct MI450 series of GPUs – with up to 432 gigabytes of RAM operating at 19.6 terabytes per second – comes online in the coming months, things will be surging.
“Don’t be surprised to see the company’s AI growth rate soar,” the investor emphasizes.
Acknowledging that the past few months have been difficult for investors, Brumley argues that now is the time to load up.
“Perhaps of more interest to investors is the fact that, given its subpar performance since November, very little of this potential upside actually appears to be priced into the stock,” concludes Brumley. (To watch James Brumley’s track record, click here)
Wall Street is also expecting the stock to do nicely. With 26 Buys and 8 Holds, AMD enjoys a Strong Buy consensus rating. Its 12-month average price target of $284.29 would translate into gains of ~16%. (See AMD stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.